Corporate governance in India and regulatory laws: a study in the context of shareholder activism
- Bihar Journal of Public Administration
- 21(2s), Jul-Dec, 2024: p.493-508
Imagine a corporate landscape where shareholders, armed with both information and infl uence, reshape governance structures to prioritize transparency, accountability, and sustainability. This research delves into shareholder activism in India, focusing on its evolution, driving forces, and practical impact. Beginning with a historical overview, the paper explores regulatory milestones and the foundational role of the Companies Act, 2013, and SEBI’s guidelines. We examine engagement mechanisms, from proxy advisory fi rms and voting rights to the infl uence of class action suits, using cases like the Jindal Poly Films suit to highlight the real-world implications. Emerging trends such as ESG-focused demands, institutional investor engagement, and the role of digital platforms underscore the shift towards a more transparent and inclusive corporate culture. Challenges such as regulatory constraints, corporate resistance, and cultural barriers are discussed alongside future opportunities. Ultimately, the paper underscores the transformative potential of shareholder activism in driving corporate accountability and advocates for a stronger framework to support shareholder infl uence in India’s evolving governance landscape. The present research suggests actionable reforms to empower shareholders and shape responsible corporate practices. - Reproduced