Corporate Governance and Legal Compliance in Indian Companies

Abstract

Corporate governance has emerged as a critical determinant of organizational success and stakeholder protection in India's evolving business landscape. This paper examines the comprehensive regulatory framework governing corporate governance and legal compliance in Indian companies, analyzing the effectiveness of current legislative provisions, particularly the Companies Act, 2013, and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Through critical analysis of landmark corporate governance failures, including the Satyam Computer Services scandal, this study identifies key gaps in implementation and enforcement mechanisms. The research reveals that while India has established a robust regulatory architecture, challenges persist in ensuring effective compliance, particularly among smaller enterprises and emerging sectors. The paper concludes with recommendations for strengthening governance mechanisms through enhanced disclosure requirements, independent oversight, and leveraging technology for better compliance monitoring. This comprehensive analysis contributes to understanding the dynamic interplay between regulatory framework and corporate behavior in one of the world's fastest-growing economies.