Abstract

The corporate structure has many stakeholders, including suppliers, investors, creditors, and shareholders. It can be challenging to balance the interests of parties involved in procedures regulated by laws, such as bankruptcy or corporate governance. Legal frameworks, like the Insolvency and Bankruptcy Code, 2016 (IBC), are intended to balance the conflicting interests of many stakeholders, including creditors, employees, shareholders, and other interested parties while maintaining justice and transparency. Every stakeholder group has different priorities i.e. creditors emphasize debt collection, shareholders aim to maximize profits, and employees value job security. Legal codes offer a methodical approach that guarantees the systematic consideration of stakeholder interests. The challenge lies in balancing these divergent interests while upholding the sustainability, efficiency, and equality standards. Legal procedures must balance current claims with long-term sustainability to prevent any party from becoming unduly privileged. This often involves discussions, strategic decision-making, and adherence to regulatory rules, such as creditor committees or shareholder rights, to prevent the domination of more powerful stakeholders. Stakeholder management is dynamic and complicated due to the effect of the wider economic and regulatory environment on these activities. This short article examines case studies in corporate governance and bankruptcy scenarios to investigate the mechanisms within legal codes. It also emphasizes the significance of judicial monitoring, regulatory agencies, and transparent communication to achieve fair results that safeguard the interests of all parties concerned.

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