A STUDY OF CORPORATE GOVERNANCE VIS-A VIS SHAREHOLDER AGREEMENT

Abstract

This research delves into the intricate dynamics of shareholder activism within the context of corporate governance in India. Through an extensive analysis of case studies and legal precedents, the study examines the multifaceted impact of shareholder activism on company operations, governance standards, and stakeholder rights.

The investigation reveals a nuanced understanding of the advantages and disadvantages associated with shareholder activism. While activism can potentially enhance operational efficiency, promote corporate governance, and encourage socially responsible investing, it also poses challenges such as impeding long-term growth, disrupting decision-making processes, and fostering internal conflicts within companies.

Furthermore, the study explores Indian institutional activism case studies, including acquisitions, related party transactions, and mergers, to illustrate the tangible effects of shareholder activism on corporate decisions and outcomes. By incorporating case law examples, such as the Vodafone tax case, the Reebok India scam, and the Kingfisher case, the research underscores the legal and regulatory dimensions shaping shareholder activism in India.

In conclusion, the study advocates for constructive engagement between shareholders and companies, emphasizing the importance of dialogue and collaboration to foster sustainable business development. By aligning activism with the interests of all stakeholders and promoting transparency and accountability, shareholder activism can catalyze positive change within corporate governance frameworks and contribute to long-term business success.