Tuesday, September 28, 2010

Indian Corporate World - Ademocratic Set Up

Our is said to be biggest democracy in the world. Unfortunately bloods flowing in our bodies are more accustomed to ademocratic things. Forget "Government of the People, by the People, for the People" such famous slogans are unpalatable to most of us.

Even the Corporate World prevailing in India is governed by the Indian Companies & others Acts which are  patently favourable to the so-called Captains of the Corporate. GOI is ever ready to act as desired & suggested by the Chambers of Commerce, Industries, etc. Once a Company is formed by issue of shares to the public both big and small, show is run by the so-called promoters with the sole motto : 'Company of the Shareholders, by the Promoters for the Promoters'.

Time & again the laws, the regulations, the rules and the governance is made favourable to the haves. Even GOI disregards the spirits of the laws. Take for example, the appointment of so-called Independent Directors by the listed PSU's. They are appointed by no body else but the Government. To be fair to minority shareholders, such posts should be filled up by selections with the majority shareholder (GOI) keeping a low profile and neutral stand. I wish they set a standard of governance for at least the listed Companies.

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