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Trending: Call for Papers Volume 5 | Issue 2: International Journal of Advanced Legal Research [ISSN: 2582-7340]

CORPORATE GOVERNANCE AND CONCENTRATED OWNERSHIP – Harsh K. Pandya

Abstract

Corporate governance and concentrated ownership are two pillars in shaping the structure and operations of businesses. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. On the other hand, concentrated ownership refers to a situation in which a significant portion of a company’s shares is owned by a small number of shareholders or a single entity. The interplay between corporate governance and concentrated ownership has significant implications for how companies are managed and governed. The relationship between corporate governance and concentrated ownership is complex and requires careful consideration. While concentrated ownership can bring benefits such as rapid decision-making and strategic focus, it also poses risks related to accountability and conflicts of interest. Effective corporate governance mechanisms are essential to address these risks and ensure that companies operate in the best interests of all stakeholders. By promoting transparency, accountability, and ethical behaviour, companies can build trust with shareholders and contribute to long-term value creation.

Key Words: Corporate Governance, Concentrated Ownership, Companies Act, Promoters.