“Role Of Company Law In Promoting Corporate Governance: A Comparative Study”

Abstract

For businesses to operate efficiently and generate value for its stakeholders, including shareholders, corporate governance is crucial. This article compares and contrasts several legal frameworks to provide an examination of the function of company law in promoting as well as developing the corporate governance. The idea and significance of corporate governance are defined and explained in the article, which also emphasises the connection between company law and corporate governance. The contribution of company law to corporate governance is assessed, and the difficulties that legal structures for corporate governance encounter are examined. The study finds various loopholes and weaknesses in these structures, and it discusses potential fixes for these weaknesses and difficulties.

The study's implications for corporate governance theory and practice are examined in the conclusion part of this article, along with suggestions for strengthening the legal framework of the corporate governance. The study shows that legislative frameworks are essential for encouraging sound co[1]rporate governance practices and that corporate governance is a complicated and multifaceted topic. A comparative study of legal frameworks shows that there is no standard approach of corporate governance and that several nations have unique legal systems designed to meet their unique requirements and difficulties.

Effective corporate governance is nevertheless hampered by issues including poor stakeholder participation, insufficient enforcement tools, and a lack of transparency even in the presence of legal frameworks. The report suggests that stronger disclosure rules, increased stakeholder participation, and improved enforcement mechanisms are necessary to solve these issues. By offering a thorough examination of the function of company law in fostering corporate governance, the researcher adds to the body of knowledge on corporate governance and offers suggestions for further research.