Analysing The Effect Of Transplantation On Corporate Governance Norms In India

FULL TEXT LINK

Kavya Sharma, BA LLB (Hons.), Tamil Nadu National Law University, Tiruchirappalli.

Mohit Byadwal, BA LLB (Hons.), Tamil Nadu National Law University, Tiruchirappalli.

ABSTRACT

The question whether the transplantation of corporate governance norms from jurisdictions like U.K. and U.S. has been efficient and sustainable in Indian corporate structure still does not have concrete answer. These jurisdictions follow the outsider model of governance which is different from the insider model as the latter is more prevalent in Indian settings. With several years being passed after the concrete standardized efforts for the enhancement of corporate governance, the review of the impact of enforced corporate governance norms on the Indian corporate sector must be checked and if such policies are adequate or any mid- course action is required. Apart from this, the efficacy in former has been in doubt after large scale corporate failures in these jurisdictions.

This paper will deal with analysing the system of corporate governance existing in India in light of discussing the framework which exists in outsider model of governance, primarily focusing on U.K. and U.S. It will examine the working and outcome of transplants in the Indian corporate governance system in relation to other major changes and events happening around. The paper will also delve into the idea of enhanced shareholder protection, if adopted gradually, leads to effect on growth of the financial market, thus analysing the point of this entire dynamics being favourable for Indian model of corporate structure.

ANALYSING THE EFFECT OF TRANSPLANTATION ON CORPORATE GOVERNANCE NORMS IN INDIA.pdf

Download PDF • 311KB