Economics of Corporate Survival and Theory of Governance Gap vis-à-vis the Companies (Amendment) Act, 2017
ARTICLES ON COMPANIES (AMENDMENT) ACT, 2017
Authored by: Ashish Makhija, Managing Attorney, AMC Law Firm, New Delhi (firstname.lastname@example.org)
Article Source: The Chartered Secretary
Survival is the most dreaded term in the corporate world. Company boards discuss growth strategies but do not discuss survival; it is assumed. The focus remains on policy and strategy formation leaving implementation to the top management. Governance concentrates on strategic decision making defining core aspects – values, mission and vision. It is the “framework of accountability to users, stakeholders and the wider community, within which organisations take decisions, and lead and control their functions, to achieve their objectives.
Management, on the other hand, is believed to be concerned about working within the confines of strategies and policies..