CORPORATE GOVERNANCE PRACTICES IN INDIA: A THEORETICAL ASPECT

In this article, the author endeavours to delve into the evolution of corporate governance in India post the enactment of the Companies Act of 2013. This critical legislation introduced several key provisions aimed at strengthening transparency, accountability, and fairness in corporate entities. In this article, the author discusses and highlights the importance of notable changes, including the restructuring of board compositions, the designation of Key Managerial Persons (KMPs), the revised criterion for the appointment of the company’s auditor, and the establishment of essential committees within the prescribed class of companies, such as the audit committee, stakeholder relationship committee, nomination and remuneration committee, and corporate social responsibility committee while highlighting its impact on corporate governance. The author also highlights other measures introduced in addition to these changes to enhance governance, such as mandatory disclosure of directors’ interests, the creation of vigil mechanisms, tighter control over related party transactions, and the introduction of internal and secretarial audit requirements. Hence the Companies Act of 2013 significantly contributes to creating a more transparent, accountable, and fair corporate landscape.