- This is one prospect that keeps developing day by day and it contains an enormous bunch of regulations. Corporate Law is bound by five major characteristics which include the legal personality of an entity, indebtedness, transfer of shares, delegated management under a board structure, and investor ownership.
- Corporate Law governs the companies and corporations to make sure that there’s a legally-guided approach towards the fulfilled achievement of the above-mentioned five characteristics a corporation must have a correct method of control so as to safeguard the shareholders and other stakeholders of the corporate. aside from the administrators of the corporate, only proper regulations can guide the businesses during this aspect.
- There are various statutes that control the mechanism of corporate governance in India. they’re as follows:
1. the businesses Act, 2013 which contains provisions concerning board constitution, board meetings, board processes, independent directors, general meetings, audit committees, related party transactions, disclosure requirements in financial statements, etc.
2. Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI): ICAI is an autonomous body, which issues accounting standards providing guidelines for disclosures of monetary information.
3. Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI): ICSI is an autonomous body, which issues secretarial standards in terms of the provisions of the New Companies Act.