A Critical Study on the Need of Corporate Governance Practices In India |
To overcome the limitations of the partnership form ofbusiness, mainly on account of the limited availability of capital, thecorporate form of business has gained widespread acceptability, succeededgradually and expanded worldwide. However, not all companies are managedsuccessfully. There has been a spree of corporate frauds worldwide, e.g., Enronin the United States (US) and more recently in India, Satyam Computers. Thelatter had accounting and auditing flaws apart from lack of accountability andoversight by Independent Directors at Board meetings. There was nowhistle-blowing in case of Satyam Computers unlike Enron. The Satyam Computersrevelation was an outcome of a takeover attempt. It eroded the wealth ofshareholders.