标题:
Corporate Governance and Shareholder Activism in India—Theoretical Perspective
作者:
Iragavarapu Sridhar
关键词:
Shareholder Activism, Corporate Governance, Institutional Investors, Powers of Shareholders, Board of Directors
期刊名称:
Theoretical Economics Letters,
Vol.6 No.4,
August
5,
2016
摘要: The
origin of division of powers between Board of Directors and Shareholders has
been subject of different judicial interpretations. Company law is a standard
federal law. Hence, it envisages a clear division of powers between Shareholders
and Board of Directors. The purpose of this paper is to analyse the methods and
role envisaged for shareholders in corporate governance, given the little
incentives and limited means available to them to perform any supervisory function
over Board of Directors. The study reports, that it is difficult to tie down
any definite role for investors in corporate governance. Corporate governance ought
to shift from being a procedural requirement when it comes to
addressing the issue of shareholder activism. An implication of the study is to
put emphasis for enforcement of shareholder rights through civil proceedings. This
can be achieved by introducing substantive provisions codifying duty of care,
fiduciary role-playing requirements for Board of Directors.