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CORPORATE GOVERNANCE IN INDIA : THE INFOSYS TURMOIL


Image by Charles Forerunner from Unsplash

This piece has been authored by Ms. Saru Sharma, a first year student of B.A.LL.B(Hons.) at the Rajiv Gandhi National University of Law, Punjab.

Introduction


India, in the recent years, has witnessed manifold instances of weak governance, fraud and chronic capitalism. This has not only led to the demise of many large-listed companies but has also led to the emergence of a growing concern around corporate governance in various corporations, agencies and firms in the country. A Punjab and Maharashtra Co-operative Limited bank that went down earlier this year, is proof that regulated companies can both suffer and be a trigger for fraud. To say the least, as trends go, matters that are categorized under the general umbrella of “corporate governance" are only set to take up greater mind space among CEOs and boards in the coming years. These include issues about the wholesomeness of board and committee composition, disclosure standards, succession planning, executive compensation, stakeholder engagement, board effectiveness and evaluation, risk management and strategy for environmental, social and corporate governance (ESG). [i]


Corporate Governance: What Is It?


At this crucial juncture, the need for discussion and awareness creation about corporate governance seems more important than ever before. The term corporate governance refers to the act of managing an entity.[ii] Corporate Governance (CG) may be defined as a