Business Ethics and Corporate Governance, Second Edition

INDIAN MODEL OF GOVERNANCE

The Indian corporates are governed by the Company’s Act of 1956 that follows more or less the UK model. The pattern of private companies is mostly that of closely held or dominated by a founder, his family and associates. Figure 14.4 illustrates how the corporate governance system works in India.

Available literature on corporate governance and the way companies are structured and run indicate that India shares many features of the German/Japanese model, but of late, recommendations of various committees and consequent legislative measures are driving the country to adopt increasingly the Anglo-American model. In terms of the legislative mechanisms, Indian government and industry constituted three committees to study ...