Abstract

Corporate democracy refers to the enjoyment of the rights and privileges available to the shareholders of a company at all times and in an unbiased manner. In a practical scenario, the dominant shareholders may marginalize the minority shareholders since the former can make decisions that are detrimental to the best interests of the minority shareholders. Hence, regardless of the share volume, the minority shareholders should be treated equally i.e. they must be permitted at liberty to participate in the meetings and influence the decisions made by the Board of Directors in the corporation. The management must carry out its activities by bearing in mind the welfare of the shareholders. Sound corporate governance is quintessential in developing added value to the stakeholders as it guarantees transparency which in turn ensures robust and stable economic development. It further safeguards the interests of all stakeholders including the rights of the minority shareholders. It ensures that every shareholder can exercise their rights subject to the legal provisions and that their rights are fully recognised by the corporation. Promotion and maintenance of corporate democracy retain the existing shareholders by gaining their confidence, trust and loyalty towards the company and attract more investments to the business that paves the way for the long survival of the company in the market with intact goodwill.

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