Framework for Corporate Governance

Abstract

Corporate governance refers to the controls, procedures, and relationships that govern corporations. It consists of the policies and procedures for making business decisions as well as the methods used to create and pursue an organization's goals in the context of the social, regulatory, and market environments. Monitoring corporate policies, practices, and choices, as well as those of their agents and other stakeholders, is a function of governance structures. The rights and obligations of the various members of the corporation are defined by the governance structures and principles. Corporate governance in India is governed by various laws, regulations, and guidelines that aim to ensure transparency, accountability, and responsible management of companies. The framework for corporate governance in India includes both mandatory requirements as well as voluntary guidelines. In recent years, there has been a growing recognition worldwide of the importance of gender-inclusive governance in corporate structures. This recognition stems from the understanding that diverse perspectives, including those of women, are essential for effective decision-making, risk management, and sustainable business practices. In the Indian context, where gender disparities have historically been prevalent, there has been a push to introduce frameworks and guidelines to promote gender-inclusive corporate governance. Globally, the call for more gender diversity on corporate boards has been gaining momentum. The Companies Act, 2013 in India also recognizes the importance of gender diversity and provides for mandatory appointment of atleast one women director in the listed and other specified class of companies. In the past years, there have been a variety of instances when a corporate crisis has been caused by systematic fraud against investors that involves deception and suppression of crucial information that would-be investors should be aware of. This paper discusses legislative perspectives on the framework for corporate governance in India, specifically focusing on gender inclusion.