Corporate Governance

Corporate Governance in India: Best Practices and Legal Framework

  • 10 Nov 2025
  • KP Law & Legal Associate

Effective corporate governance strengthens investor confidence and ensures regulatory compliance.

Key Legal Framework

  • Companies Act, 2013 – board responsibilities and disclosures

  • SEBI Listing Regulations – for listed companies

  • Independent directors and audit committees

Best Practices

  • Board diversity and skill-based appointments

  • Regular financial reporting and audits

  • Code of conduct for directors and employees

“Good corporate governance balances stakeholder interests and promotes sustainable business practices.”

FAQs

Q1. What is corporate governance?
A: Mechanisms and policies to manage a company ethically and legally.

Q2. Are independent directors mandatory?
A: Yes, for certain categories under Companies Act, 2013.

Q3. What role does SEBI play?
A: SEBI ensures transparency and investor protection for listed companies.

Q4. How often should boards meet?
A: As per Companies Act, 2013; typically at least 4 times a year.

Q5. What happens for non-compliance?
A: Legal penalties, fines, and reputational risks.