LIJDLR

Companies Act 2013

FROM COMPLIANCE TO ALGORITHMIC GOVERNANCE: THE FUTURE OF AI-DRIVEN CORPORATE REGULATION UNDER INDIAN COMPANY LAW

Volume IV Issue I /

FROM COMPLIANCE TO ALGORITHMIC GOVERNANCE: THE FUTURE OF AI-DRIVEN CORPORATE REGULATION UNDER INDIAN COMPANY LAW Amritanshu Upadhyay, BBA LL.B (Hons), 6th Semester, Student at Amity Law School, Amity University Uttar Pradesh, Lucknow (India) Download Manuscript doi.org/10.70183/lijdlr.2026.v04.72 The rapidly advancing integration of artificial intelligence into corporate decision-making processes offers both transformative opportunities and fundamental regulatory challenges to the existing company law framework in India. While existing literature has largely focused on questions of legal personhood and its implications on corporate liability, a far more critical and pertinent concern has received limited attention: how existing architecture for corporate compliance under the Companies Act, 2013, can be reconceptualized to accommodate, regulate, and hold accountable AI-driven systems of corporate governance that already exist across Indian corporations. This paper contends that India is currently at a critical juncture in its corporate law regulation, wherein a passive model of corporate compliance grounded on human agency and reactive enforcement is gradually being supplanted by an emerging model of algorithmic governance, wherein AI systems conduct audits, monitor transactions, and undertake risk assessments autonomously. In this regard, this research, drawing on the doctrinal research on the Companies Act, 2013, SEBI regulations, and the national AI policy space, and informed by a comparative analysis of the EU, UK, and Singaporean regimes, seeks to develop a normative framework on AI-driven corporate regulation in India, and in this regard, argues that accountability in algorithmic governance must be rethought in terms of three key pillars: the mandatory explainability of AI systems in governance roles, a recrafted duty of care for directors in AI-driven decision-making, and the AI audit mechanism in corporate compliance law.

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CORPORATE GOVERNANCE AND CORPORATE ACCOUNTABILITY IN INDIA: A CRITICAL ANALYSIS UNDER THE COMPANIES ACT 2013

Volume IV Issue I /

CORPORATE GOVERNANCE AND CORPORATE ACCOUNTABILITY IN INDIA: A CRITICAL ANALYSIS UNDER THE COMPANIES ACT 2013 Aleena. B. Alex, LLM (Business Law), 2nd Semester Student at Amity Institute of Advanced Legal Studies, Amity University (Noida) (India) Download Manuscript doi.org/10.70183/lijdlr.2026.v04.66 The role of corporate governance in ensuring transparency, accountability and responsible management of corporations is an extremely important one. Corporate Governance consists of the whole system of rules, practices and processes by which a company is directed and controlled. The idea behind effective corporate governance is to protect the interests of shareholders and all stakeholders, as well as to encourage ethical behavior in the business community. In India, corporate governance has evolved with the enactment of the Companies Act 2013, which contains numerous provisions for improving corporate accountability and transparency in corporate operations, and therefore enhancing the overall governance framework in the country. The enactment of the Act includes several major governance mechanisms, such as the appointment of independent directors, the establishment of board committees and improved requirements for disclosure of information. These governance mechanisms have been incorporated into the Act to improve decision making within corporations and to provide companies with a structure to carry out their businesses in a transparent and responsible manner. However, despite having established several of these important legal governance mechanisms, the ongoing issues with respect to corporate mismanagement, a lack of transparency, and weak enforcement mechanisms are calling into question the adequacy of the existing governance practices for corporations in India. The objective of this research is to investigate the impact of corporate governance on corporate accountability, specifically under the context of the Companies Act 2013. This paper provides a critical analysis of the different governance mechanisms prescribed in the Act and assesses their ability to promote responsible behavior by corporations through effective means of enforcement. Additionally, this study discusses the challenges associated with implementing corporate governance principles and stresses the need for regulatory enforcement, improved compliance initiatives, and increased regulation to enhance accountability in Indian businesses.

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CORPORATE DEBT RESTRUCTURING: LEGAL INTERSECTION OF COMPANY LAW AND IBC

Volume III Issue II /

CORPORATE DEBT RESTRUCTURING: LEGAL INTERSECTION OF COMPANY LAW AND IBC Karthikeyan D, Presidency University Bengaluru Download Manuscript doi.org/10.70183/lijdlr.2025.v03.76 Corporate Debt Restructuring (CDR) is a critical mechanism within India’s financial ecosystem, designed to facilitate the revival of financially distressed companies while safeguarding broader economic stability. This article examines the evolving legal framework governing CDR in India, focusing on the intersection of company law, banking regulation, and insolvency legislation. The Companies Act, 2013, provides the statutory foundation for corporate-level restructuring decisions through Sections 230 to 232, which enable schemes of compromise and arrangement to be made under judicial supervision. Simultaneously, the Reserve Bank of India (RBI) has issued prudential frameworks, including the erstwhile Corporate Debt Restructuring Mechanism and the recent Prudential Framework for Resolution of Stressed Assets, guiding financial institutions in managing non-performing assets. The introduction of the Insolvency and Bankruptcy Code (IBC), 2016 marked a transformative shift in India’s restructuring regime by introducing a time-bound, creditor-driven resolution process with legal enforceability. The IBC complements existing restructuring frameworks by serving as both a deterrent and a formal resolution mechanism. Provisions such as Section 230 schemes during liquidation and the Pre-Packaged Insolvency Resolution Process (Pre-Pack IBC) reflect the integration of insolvency laws. Beyond statutory regimes, this article addresses contractual and security law dimensions, including loan renegotiations, covenant modifications, and enforcement of security interests under the SARFAESI Act, 2002. The analysis highlights judicial evolution through landmark rulings such as Essar Steel, Jet Airways, and Swiss Ribbons, which reinforce creditor rights and ensure procedural integrity. Despite progress, challenges persist, including regulatory overlaps, procedural delays, and inter-creditor conflicts. Recent developments such as RBI’s emphasis on out-of-court restructuring and India’s move toward cross-border insolvency norms signal a forward-looking approach. This article concludes that a harmonized framework combining company law, banking regulation, and insolvency law is essential for improving efficiency, enhancing creditor confidence, and strengthening India’s corporate resilience.

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