COVID-19 and Corporate Governance (India): Practical Issues, Implications and New Relief Measures

Purpose: This research aims to study number of practical issues and risk faced by corporates and its implications and new relief measures introduced in relation to Corporate Governance (India) during COVID-19 outbreak. However, their extent and impact will naturally vary with the nature and size of a business.Design/Methodology/Approach: Exploratory research is used to study and investigate practical issues and implications faced by Corporates regarding Corporate Governance practices in India during COVID-19 outbreak.Findings: COVID-19 Pandemic has impacted not only human but significant commercial impact being felt globally. It has come with inherent commercial risks impacting on business operations due to disruptions to Meetings, Dividend, Liquidity, Disclosure, Capital Allocation, Risk Management and Internal Control. Regulators should allow companies to conduct a hybrid AGM. It has compelled Companies to step up on building their technology infrastructure. Management should review of their share buyback programmes during such financial crisis. Remuneration committee should emphasize on Executive Pay matters. Government has initiated relief measures under Companies Act, 2013 and LLP Act, 2008 and relaxations from compliance with provisions of the SEBI (LODR) Regulations, 2015 due. Major initiative is contribution for COVID-19 is eligible CSR activity and introduction of schemes of Companies Fresh Start and revised the LLP Settlement to provide a opportunity to make good any filing related defaults and make a fresh start on clean slate.Originality/value: Drawing on such analytical framework, this research provides further directions to amend and inculcate various corporate Governance practices for Government, Regulators, Companies and other stakeholders during such crisis. It also addresses the current policy issues that may have a significant effect on Corporates strategies.