Corporate Governance through the Eyes of a Minority Shareholder

Corporate governance regulations and norms are being widely transplanted into the laws of developing countries like India from developed countries. They are modified and implemented in the corporate law regime best suited to the Indian demographic. Over the years, we have seen the growing importance of corporate governance. It is much needed to incorporate a culture of consciousness, openness and transparency in the corporate world. Corporate law broadly performs two functions; firstly, it provides structure and secondly, it helps to control the conflicts between the constituencies. Concentrated shareholding is very common in India owing to a large number of promoter/ family-driven companies. In such circumstances, minority shareholders have little control of the operations of a company on account of which the interests of the minority are often overlooked. This paper will delve into the majority-minority problem prevalent in India and the ancillary issues, which arise on account of them.