Building a Better Boardroom: The role of IBC in advancing corporate governance in India
business environment. In India, where businesses thrive in a diverse and dynamic landscape, the importance of sound corporate governance cannot be overstated.
In recent years, the Insolvency and Bankruptcy Code, 2016 (IBC) has emerged as a vital instrument in advancing corporate governance practices in the country. This article delves into the dynamic relationship between corporate governance and IBC, highlighting how the latter has played a transformative role in building a better boardroom in India.
Understanding Corporate Governance
Before delving into the role of IBC, it is essential to understand what corporate governance entails.
Corporate governance pertains to the system of regulations, customs, and procedures governing the direction and oversight of an entity. In case of a company, it involves a delicate balance of power and responsibility between a company's board of directors, management, shareholders, other stakeholders and the regulators.
The fundamental goal of corporate governance is to ensure that the interests of all stakeholders are safeguarded, and corporate objectives are met efficiently and ethically.
The OECD Principles of Corporate Governance (“OECD Principles”), established in 1999, have become a global reference for countries w.r.t corporate governance practices. These principles emphasize the vital role of good corporate governance in supporting economic strength and stability worldwide.
The OECD Principles serve as the international standard for corporate governance, guiding reform efforts by governments and the private sector.
