Regulating corporate governance by rules is like regulating morality by law. It will rarely be wholly successful and what’s worse will be followed in letter than in the supposed spirit
The law itself is arbitrary, vaguely drafted and has become quite convoluted in an attempt to plug as many holes as possible. (Representational image)
Highlights: Corporate governance regulation has been reduced to a tick-box approach in most cases. However, that means rules may be followed in letter but not spirit The case of a startup founder has raised a question of whether a founder who is not a promoter can be issued ESOPs. The law says he can if he’s not a promoter The larger issue here is why promoters should not be issued ESOPs, if they can be paid a remuneration or be issued equity…
