UNIVERSITY OF PETROLEUM & ENERGY STUDIES

COLLEGE OF LEGAL STUDIES

BBA., LLB(HONS.)
SEMESTER 7
ACADEMIC YEAR: 2016-2017
SESSION: AUGUST-DECEMBER

CORPORATE GOVERNANCE
ABSTRACT

Under the Supervision of: Prof. Sujata Bali

NAME:

SHREYA

SAP ID:
ROLL NO:

500028483
62

Competition Law in Corporate Governance

Abstract
Competition is a situation in the market in which firms or sellers independently strive for the
buyers patronage in order to achieve a particular business objective, for example, profits, sales
or market share. It is an open market rivalry in which every seller tries to get what other sellers
are seeking at the same time - sales, profit, and market share by offering the best practicable
combination of price, quality, and service. Corporate governance is important, which empower
corporate to accommodate to the intensified pace of competition thrown by the rapid moment of
globalization, survive and grow in a systematic and sustained manner. Corporate governance is
not only about regulatory frame work, but creates and charges with a task of constituting
conducive environment of trust and confidence among various stakeholders. Thus, this paper
would make a deep study with the help of various cases throughout the world to learn how the
perspective of corporate governance should be inherent while framing competition laws.
To promote healthy market competition, the public policy has to evoke two things: competition
law and corporate governance. Competition policy and corporate governance are introduced as a
necessary step to take en route to developed nation status. While such policy changes have been
brought about cautiously, there has also been a fair degree of disciplining imposed given the
tough reality of the economic circumstance being currently faced. This paper will analyze the
current competition law of India and also make various recommendations to it that will enhance
the fair market status through the principles of corporate governance.
The aim is show that how the competition in the product market can act as an externality to the
corporate governance, and act as a check on the exercise Manager's discretionary power. There is
no doubt that there is a perfect linkage between the internal governance mechanism and the
performance of a corporation. But it has to be remembered at the same time that the external
governance mechanisms including competition, as also of vital importance, though there has
been a very little attention given to the interaction between internal and external governance
mechanism in emerging market economies. Here the paper has tried to show the independent and
interaction effect of ownership and competition variable on firm level productivity.