Efficacy of Corporate Governance in Curbing Corporate Frauds in India

In recent times, corporate frauds have been snowballing in the corporate world mainly due to poor corporate governance. The reporting and publication of such frauds are taking an enormous amount of time to be thrust into the limelight. It is mainly due to the fact that those committing such frauds are well-equipped with the knowledge of exploiting the legal loopholes to their advantage and using advanced technologies to commit such corporate scams and evade dire consequences. Eventually, the interests of the stakeholders, particularly the minority shareholders are at stake. Hence, it is advisable to enhance robust corporate governance by incorporating a proper code of conduct for the directors and executives and other employees of a corporation and there should be an independent ethical officer who can oversee the activities of the dominant shareholders and higher authorities and make them accountable for all their actions that are detrimental to the interests of the company and its stakeholders. Corporate frauds could be mitigated if there is a proper compliance mechanism by regulatory bodies and proper implementation of the standards of corporate governance.