Indian Economy

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Corporate Governance in India

Introduction

A series of corporate scams and collapses in the late 1980s and early 1990s made the United Kingdom realize that the existing rules and regulations were inadequate to curb unlawful and unfair practices of corporations. It was with this view that a committee under the chairmanship of Sir Adrian Cadbury was appointed by the London Stock Exchange in 1991. This Cadbury committee, consisting of representatives drawn from the echelons of British industry, was assigned the task of drafting a code of practices to assist corporations in England in defining and applying internal controls to limit their exposure to financial loss, from whatever cause it arose. The committee submitted its report along with the ...