1. Home
  2. Blog
  3. UPSC

Corporate Governance Charter for Start-Ups


Why is it in the news?

  • The Corporate Governance Charter for Start-ups was released by Confederation of Indian Industry (CII).
  • It is in response to the erosion of shareholder value in Indian startups, exemplified by recent high-profile governance failures like BharatPe and GoMechanic.

More about the news

  • Corporate Governance is a vital framework of value-driven principles guiding an organization’s trajectory, grounded in Transparency, Fairness, and Accountability.
  • The charter aims to instil stability, growth, and resilience in startups, emphasizing ethical practices and responsible governance at all stages of their development.
  • The charter serves as a self-governing code specifically tailored for startups incorporated under the Companies Act, 2013.
  • Provides tailored guidelines for startups at various stages of their lifecycle, including Inception Stage, Progression Stage, Growth Stage, and Going Public Stage.
  • Offers clear definitions of roles and responsibilities for members of the Board and directors, particularly in the Progression Stage.
  • Facilitates startups in assessing their current governance status and monitoring improvement over time.
  • Further, it enables startups to measure their adherence to governance principles and identify areas for enhancement.
Key Legal Provisions Related to Corporate Governance in India

路聽 聽 聽 Companies Act, 2013: Provides a comprehensive legal framework for corporate governance, outlining the rights, duties, and responsibilities of companies, directors, and stakeholders.

路聽 聽 聽 Securities and Exchange Board of India (SEBI): Monitors corporate governance practices of listed companies and ensures compliance with regulatory requirements.

路聽 聽 聽 National Foundation for Corporate Governance (NFCG): Established by the Ministry of Corporate Affairs, promotes good corporate governance practices through research, advocacy, and capacity building initiatives.

 

Get free UPSC Updates straight to your inbox!

Get Updates on New Notification about APPSC, TSPSC and UPSC

Get Current Affairs Updates Directly into your Inbox

Discover more from AMIGOS IAS

Subscribe now to keep reading and get access to the full archive.

Continue reading