Failure of Corporate Governance and Irregularity: Protection to Unlisted Companies

Corporate governance refers to the rules, processes or laws that govern how business run Corporate governance failure refers to situation when a firms management or board of directors failure to uphold their moral and legal obligation to the company and all of its stakeholders including shareholders employees, customer and wider community. Scam teaches the importance of corporate governance White-collar crimes, which include deception, concealment, and breach of trust, are another name for scams. These crimes are typically carried out by business professionals with the intention of making money. Many scams in India like Satyam computers scam, sahara scam, national spot exchange scam, collocation scam etc. After Satyam scam SEBI increased corporate governance standards and number of significant requirements have been included by the Companies Act of 2013 to guarantee excellent governance in line with the international business environment such as Women's Director, Nomination and Remuneration Committee, Independent Director, and Internal Audit tightened financial reporting guidelines and corporate governance requirements for listed publically traded companies in the country. As per clause 49 SEBI monitors and regulates corporate governance of listed companies in India. But in India 90% are either private or unlisted public companies but there is no clause to protect corporate governance for unlisted company and private company. This paper discuss about corporate governance scams in India and also discussed that need to give mandatory clause of corporate governance to protect unlisted companies.