India is changing. India has already positioned itself into the world
as a superpower of future. India’s economy is growing rapidly than any other
developing countries in the world. Business in and with India is the most
important point in the business-itinerary of any top businessman around the world.
Understanding the trend, Indian government has brought many changes (positive
ones) in the business world. And Corporate Governance is one of them.
Importance of Corporate
Governance in India
An organization with good corporate governance accumulates a higher
level of confidence from the shareholder of the company. Independent directors
of the company contribute to instill a positive outlook of the company across
the financial market and positively influence price of the share. Across the
world, Corporate Governance is undoubtedly one of the most important criteria
for foreign institutional organizations and companies to decide which company
they want to invest in. Corporate Governance in India
put emphasize on the functions of audit and finances which comes with legal,
moral and ethical implications for both businesses and its impact on
shareholders. According to Indian Companies Act 2013 introduced various innovative
measures to appropriately balance legislative and regulatory reforms for the
growth of the enterprise and to increase foreign business and investment,
keeping in mind the intricacies of international practices. The rules and
regulations associated with corporate governance are the measures which help to
increase of the involvement of the shareholders decision making ability and
introduce transparency in business. This facility ultimately safeguards the
interest of the society and most importantly shareholders. Corporate Governance
not only safeguards stakeholders’ interests but also help to foster the
economic progress of a country.
Role of Business and Corporate
Law in Mergers & Acquisitions
When it comes to mergers & acquisitions, SEBI is really cautious
about implementing the various rules and regulations pertaining to Corporate Business Law.
SEBI’s Takeover Code by the Takeover Regulations Advisory Committee (TRAC) has
been laid to overhaul the oft-amended and improper complex set of norms that
govern takeovers of Indian listed companies. SEBI’s informal guide to the case
of Bharti Airtel advised that depository receipts such as ADRs/GDRs will not
attract the open offer requirements. The Code was unexpectedly amended shortly
thereafter to clarify that
holders of ADRs/GDRs will be obligated to make an open offer if only they are
entitled to exercise the voting rights under the depository agreement.
Why do we need good corporate
law firms in India
Yes, it is really important to have a Business Corporation Law to
strengthen the foundation of business transaction of India. However, it is also
important to have Business Law Firms
that will ensure the ethical business practice across the country. The role of
a good legal firm is to offer a hassle-free business formation, proceedings and
lawsuits. Starting from basic compliance issues to complex lawsuits- everything
should come under the work of a law firm. The majority of small business owners
have opined that business law firms play a major role in their business proceedings.
The role of law firms are countless – collecting and signing documents, procedures
of setting-up of new business and the headache of registering a company.
Therefore, it is utmost important to have the support of or service of
a business law firm at the time of forming a company.
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