Asst. Professor Amrita Malik, CMR School of Legal Studies, Bangalore
ABSTRACT
At the core of corporate governance is a good balance between the interests of various stakeholders, including promoters, shareholders, employees, and customers. Good governance is essential, even for even the start-ups. The four cornerstones of this system are accountability, responsibility, honesty, and transparency. These guidelines must be followed from the very beginning of a startup, with the progressive evolution of the company's governance. A substantial percentage of new businesses fail during their first few years, although that number can be lowered by sound management.
There has been a growing call for improved corporate governance in the startup sector in the wake of recent reports of lax due diligence and corporate misgovernance. No founder can delegate responsibility for governance, which is why it requires as much attention, if not more, than monitoring the expansion of a company. The Indian startup scene has been receiving praise for nearly a decade. A large number of early-stage companies are now valued at $1 billion or more. Byjus is one that has gone global, while others, like Dunzo, focus on the domestic market by offering something no one else does. Fintech, cryptocurrencies, fintech, edtech, etc., all of these fields and more have startups. However, in recent months, the need for strong corporate governance standards among new businesses has become more apparent. BharatPe, Zilingo's, Trell. Infra.market, etc., controversy has highlighted the need for better corporate governance among India's startup companies. The purpose of this article is to shed light on the problems caused by poor corporate governance in Indian startups, to explain why this is a problem, to suggest ways in which the board can promote a corporate governance culture, and to suggest actions that company founders can take to enhance the governance system.
Keywords: corporate governance, failures, Indian startups, transparency, ethics
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