Crowd Funding In India: A Reality Check

Sany Antony

Introduction

In the present world corporate governance has become a sensible measure for the long term success of
the company. There has been great interest in corporate governance because developing good corporate
governance is essential to restore economic vitality and fostering sustainable economic growth and
development.

For shareholders, effective Corporate Governance structures have become important criteria for selecting
the companies in which they wish to invest when making positive investment decisions. As the investors
are interested in long term benefits therefore they have now started to analyse the corporate governance
structure of the companies. The investors have now started comparing the various companies that which
company has implemented the various recommendations regarding corporate governance as mentioned
in various important codes.

Therefore a sound corporate governance system requires that shareholders can actively participate in,
and exert influence on, corporate strategic decision-making. The two important principle of corporate
governance can be elucidate as:

The first principle:

“The corporate governance practices should give the shareholders a real opportunity to exercise their
rights connected with their participation in the company”.

The second principle:

“The corporate governance practices should ensure equal treatment of shareholders who own the same
number of shares of the same type (category)”.

Statement of Problem

“Shareholders are the real owners of the company and get a real opportunity to exercise their rights
connected with their participation in the company”

Whether the shareholders are getting the rights which they deserve ?
Scope, Objectives and Significance.

The following Aims and Objectives have been identified for this project.

1. To examine the rights of the shareholder’s given by the company

2. To examine how corporate governance is related to shareholder’s rights.
3. To examine the International Scenario of corporate governance related to shareholder’s rights.
Research Questions

Which rights are been given to the shareholders of the company and are the really exercised?

Bibliography

 Report of the Kumar Mangalam Committee on Corporate Governance Recommendations Relating

to “Shareholder”.
 Muller Kaspar, Corporate Governance and Globalisation The Role and Responsibilities of Investors.
 Duhamel Vincent, Shareholder Rights and the EquitableTreatment of Shareholders, The Fourth
Asian Roundtable on Corporate Governance, Mumbai, India, 11-12 November 2002.
 Green Margarita, Protection of shareholder rights.
 Nestor Stilpon, OECD Principles of Corporate Governance on Shareholder Rights and Equitable
Treatment: Their Relevance to the Russian Federation.