"There Is Greater Need For Voluntary Corporate Compliance”: Experts

Talking about malicious and frivolous litigation and the rights given to minority stakeholders, Mohit Saraf, Founder & Managing Partner, Saraf & Partners asserts, “Just because it can lead to malicious and frivolous litigation, there is no reason why rights should not be extended to more stakeholders. Regulatory bodies and courts should be very active and they should wield the power to penalise. The problem in India is that there is reluctance to impose penalties on frivolous litigation.” 

Saraf adds that giving rights to different interest groups is a great idea but anyone who is frivolous should receive consequences.

Sudhir Mishra, Founder & Managing Partner, Trust Legal explains, “There are a lot of curtains in regard to the entire corporate governance matters. Independent Directors should be the first whistleblowers in the corporate governance structure. The fear factor of not being accountable and not knowing the entire facts is something which is bothering the larger ecosystem.”

Navodit Mehra, Managing Partner and General Counsel, Confity Capital Partners mentions that the responsibility lies on the General Counsel when it comes to compliance.

Mehra outlines, “We understand that 80 per cent of the work can be done in house by the GC but the rest 20 per cent which is outsourced, it needs to be made sure that the board takes the right decisions.”

While speaking at the BW Global Legal Summit and Legal Leader Awards 2024, discussion moderator Mukesh Butani, Managing Partner, BMR Legal emphasises that there is a greater need for voluntary compliance.

Butani says, “I chair audit committees for four real estate companies and a day before the committee meets the board, the volume of papers that hits my table is so overwhelming that despite having practiced as a chartered accountant for two decades, I still find it difficult to grapple with the host of regulations you have to grapple with.”