Several sections of the Act address corporate governance aspects, including:
Shareholder rights
Roles and responsibilities of directors
Disclosure and transparency requirements
Composition and powers of the board of directors
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Corporate Governance
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Corporate Governance
The Companies Act, 2013 does not explicitly define "Corporate Governance," but it provides a comprehensive framework for its practice in India through various provisions and regulations. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It governs the relationships between the company’s management, board of directors, shareholders, and other stakeholders.
The Act also mandates the creation of key committees, such as the audit committee, nomination and remuneration committee, and stakeholder relationship committee, which are integral to good governance.
Although the Companies Act, 2013 does not directly define corporate governance, it establishes the legal foundation for governance practices in India. Additionally, regulatory bodies like SEBI, RBI, and the Ministry of Corporate Affairs issue further guidelines to promote compliance and transparency in corporate governance.