Indian Journal of Industrial Relations: Economics & Social Dev.

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Some Inherent Challenges to Good Corporate Governance


Affiliations
1 Centre for Corporate Governance & Citizenship, Indian Institute of Management, Bangalore 500076, India
     

   Subscribe/Renew Journal


Are corporations, in general, amenable to good governance? Are there inherent incompatibilities between good governance and the corporate format of organizations? How can these be addressed satisfactorily without overregulation that might impair entrepreneurial potential? These are some of the nagging issues being explored in this paper. The author recapitulates the conventional principal - agent paradigm in corporations and flags some of the more important issues that militate against good governance. The paper then deals with the current governance frameworks and identifies some of the countervailing measures that best-practice prescriptions advocate. It then explores a few out-of-the-box measures that might serve as potential enablers of better governance and discusses both their justification and impact.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Bainbridge, Stephen M (2005), Director Primacy and Shareholder Disempowerment, Research Paper 05-25, University of California, Los Angeles, http://ssrn.com/ abstract=808584

  • Bebchuk, Lucian A, (2005), “The Case for Increasing Shareholder Power”, Harvard Law Review, 118:833

  • _____(2006), “Letting Shareholders Set the Rules”, Harvard Law Review, 118: 1784- 1813

  • Berle, Adolph A & Gardiner C Means (1932), The Modern Corporation and Private Property, Harcourt, Brace and World

  • Blair, Margaret M (1995), Ownership and Control: Rethinking Corporate Governance for the Twenty -First Century, the Brookings Institution

  • Cadbury, Adrian (Chairman) (1992), Report on the Financial Aspects of Corporate Governance

  • DCA, (2000), Report on Corporate Excellence through Governance, Department (now Ministry) of Company (now Corporate) Affairs, Government of India

  • Dunlavy, Colleen A (2004), “Citizens to Plutocrats: Nineteenth-century Shareholder Voting Rights and Theories of the Corporation”, in Kenneth Lipartito & Gavid B Sicilia (ed), Constructing Corporate America: History, Politics, Culture, Oxford University Press

  • Easterbrook, Frank H & Daniel R Fischel (1991), The Economic Structure of Corporate Law, Harvard University Press

  • Irani, Jamshed J(2005), Report of the Committee on Corporate Law Reforms, Ministry of Company (now Corporate) Affairs, Government of India

  • La Porta, Rafael, Florencio Lopez-De-Silanes & Andrei Shleifer (1999), “Corporate Ownership Around the World”, Journal of Finance, LIV(2) April

  • NFCG (N Balasubramanian, Nawshir Mirza & Ram Savoor) (2006), Principles of Independence, National Foundation for Corporate Governance, New Delhi

  • Organisation for Economic Co-operation and Development, OECD (2004), Principles of Corporate Governance, Organisation for Economic Cooperation and Development, Paris

  • Strine, Jr.& Justice Leo E (2006), Towards a True Corporate Republic, Discussion Paper No. 541, Harvard Law School, http:// www. l a w. h a r v a r d . e d u / p r ograms/ olin_centre/

  • Toronto Stock Exchange Committee (1994), Where were the directors?, Toronto Stock Exchange


Abstract Views: 245

PDF Views: 0




  • Some Inherent Challenges to Good Corporate Governance

Abstract Views: 245  |  PDF Views: 0

Authors

N. Balasubramanian
Centre for Corporate Governance & Citizenship, Indian Institute of Management, Bangalore 500076, India

Abstract


Are corporations, in general, amenable to good governance? Are there inherent incompatibilities between good governance and the corporate format of organizations? How can these be addressed satisfactorily without overregulation that might impair entrepreneurial potential? These are some of the nagging issues being explored in this paper. The author recapitulates the conventional principal - agent paradigm in corporations and flags some of the more important issues that militate against good governance. The paper then deals with the current governance frameworks and identifies some of the countervailing measures that best-practice prescriptions advocate. It then explores a few out-of-the-box measures that might serve as potential enablers of better governance and discusses both their justification and impact.

References