NOLEGEIN Journal of Corporate & Business Laws 2018 Issue 1 by Mba Journals

NOLEGEIN Journal of Corporate & Business Laws

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NOLEGEIN Journal of Corporate & Business Laws Nolegein - Journal of Corporate & Business Laws is focused towards the rapid publication in the following areas of

Focus and Scope of the Journal  Delegated Management  Contracts: Formation and Contents  Competition and Consumer Law  Corporate governance and corporate finance  Partnership (General, Limited, Limited liability)  Business Organizations and internal rules  Balance of power  Director's duties and liabilities  Corporate Liability: Contract, Tort and Crime

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Business     

NOLEGEIN-Journal of Management Information Systems NOLEGEIN-Journal of Business Ethics , Ethos & CSR NOLEGEIN-Journal of Entrepreneurship Planning, Development and Management NOLEGEIN-Journal of Operations Research & Management NOLEGEIN-Journal of Supply Chain and Logistics Management

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NOLEGEIN-Journal of Disaster and Business Continuity Management NOLEGEIN-Journal of Corporate & Business Laws NOLEGEIN-Journal of Organizational Behavior Management NOLEGEIN-Journal of Kautilya Strategic Management

HRM

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NOLEGEIN-Journal of Global Marketing NOLEGEIN-Journal of Advertising and Brand Management NOLEGEIN-Journal of Consumer Behavior & Market Research

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NOLEGEIN-Journal of Financial Planning and Management

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NOLEGEIN-Journal of Performance Management & Retention Strategies NOLEGEIN-Journal of Human Resource Management & Development

Finance

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EDITORIAL BOARD MEMBERS Dr.C. Ramesh Professor and Dean Department of Management and Business laws, School of Pharmaceutical Management, Jaipur, Rajasthan, India

Ansuman Jena Assistant Professor Department of Management, Centurion Institute of Technology, Bhubaneswar, Odisha, India

Dr. S Harish Babu Assistant Professor Department of Finance, Marketing and General Management, Nitte Meenakshi Institute of Technology, Bengaluru, Karnataka, India

Dr. Dayanand B. Shetty Adjunct Assistant Professor Department of Law in Management, SVKM's NMIMS, Mumbai, Maharashtra, India

Rohini Jha Assistance Professor Department of Management, Birla Institute of Technology, Ranchi, Jharkhand, India

From the Editor's Desk Dear Readers, We would like to present, with great pleasure, the inaugural First volume of a new scholarly journal, NOLEGEIN Journal of Corporate & Business Laws. This journal is part of the Corporate & Business Laws, and is devoted to the scope of present management issues, from different. This new journal was planned and established to represent the growing needs of marketing as an emerging and increasingly vital field, now widely recognized as an integral part of Management. Its mission is to become a voice of the Management community, addressing researchers and practitioners in this area. The core vision of NOLEGEIN Journal of Corporate & Business Laws in MBA Journals is to propagate novel awareness and know-how for the profit of mankind ranging from the academic and professional research societies to industry practitioners in a range of topics in advertising in general. MBA Journals acts as a pathfinder for the scientific community to published their papers at excellently, well-time & successfully. NOLEGEIN Journal of Corporate & Business Laws focuses on original high-quality research in the Business Organizations, internal rules, Director's duties, liabilities, Corporate Liability: Contract, Tort and Crime etc. The Journal is intended as a forum for practitioners and researchers to share the views of Corporate & Business Laws in the area. Many researchers have contributed to the creation and the success of the Corporate & Business Laws. We are very thankful to everybody within that community who supported the idea of creating an innovative platform. We are certain that this issue will be followed by many others, reporting new developments in the field of Corporate & Business Laws. This issue would not have been possible without the great support of the Editorial Board members, and we would like to express our sincere thanks to all of them. We would also like to express our gratitude to the editorial staff of MBA Journals, who supported us at every stage of the project. It is our hope that this fine collection of articles will be a valuable resource for Management readers and will stimulate further research into the vibrant area of Corporate & Business Laws.

Puneet Mehrotra Managing Director

Contents 1. Corporate Governance and Reporting M. Gnanasekar, R. Naveen Kumar, K. Prakash

2. Efficacy of Arbitration Under the Arbitration Act 1996 (As Amended 2015): An Overview of the Arbitration Process Dayanand B. Shetty

3. Impact of Corporate Governance on Financial Performance of Indian Listed Companies on NSE Monika Bhuva, Dr. Nailesh Limbasiya

4. A Case Study on E-Governance in South Korea D. Kumar, N. Panchanatham

5. Corporate Social Responsibility in Rural Development Preeti Gugnani

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Corporate Governance and Reporting M. Gnanasekar*, R. Naveen Kumar, K. Prakash Jay Shri Ram Group of Institutions, Tiruppur, Tamil Nadu, India

ABSTRACT In modern business organizations, the chief peripheral stakeholder groups are shareholders, debtholders, trade creditors and suppliers, customers, and communities affected by the corporation’s activities. Internal stakeholders are the board of directors, executives, and other employees. The greater part of the present enthusiasm for corporate administration is worried about adjustment of the irreconcilable circumstances between partners. In broad firms where there is a segment of ownership and organization and no controlling financial specialist, the principal– administrator issue develops between upper-organization (the “expert”) which may have out and out various premiums, and by definition fundamentally more information, than speculators (the “principals”).The threat emerges that, as opposed to supervising administration for the benefit of investors, the top managerial staff may move toward becoming protected from investors and under obligation to administration. This angle is especially present in contemporary open civil arguments and improvements in administrative approach. Keywords: capital and money markets, exchanged, financial market, growth

streams to fill in as an arrangement of balanced governance.

INTRODUCTION Corporate administration has likewise been all the more barely characterized as “an arrangement of law and sound methodologies by which enterprises are coordinated and controlled concentrating on the inside and outer corporate structures with the goal of checking the activities of administration and executives and in this manner, alleviating organization dangers which may originate from the offenses of corporate officers [1].”

Regulations The latest issue of the Regulatory Briefing provides an overview of significant developments, focusing on proposals, new legislation and other initiatives plus the PwC position on these. We also highlight areas where we believe management's input to a consultation or debate would be helpful.

The corporate administration structure comprises of (1) unequivocal and understood contracts between the organization and the partners for dispersion of obligations, rights, and rewards, (2) strategies for accommodating the occasionally clashing interests of partners as per their obligations, benefits, and parts, and (3) methodology for legitimate supervision, control, and data

Principles Contemporary talks of corporate administration have a tendency to allude to standards brought up in three records discharged since 1990: The Cadbury Report (UK, 1992), the Principles of Corporate Governance (OECD, 1999, 2004 and 2015), the Sarbanes-Oxley Act of 2002 (US, 2002). The Cadbury and Organization for Economic Co-operation

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Efficacy of Arbitration Under the Arbitration Act 1996 (As Amended 2015): An Overview of the Arbitration Process Dayanand B. Shetty* School of Business Management, NMIMS University, Maharashtra, India

ABSTRACT Arbitration is alternative method for solving disputes outside the ambit of courts but within the purview of the Act. This process was necessitated due to huge burden on courts in respect of civil matters. It provides for cost effective and expeditious method of solving commercial disputes in a time bound manner. The process of arbitration has been simplified and expedited by the Arbitration Act 1996 (As Amended 2015). The holding of arbitration proceedings, process of appeals, challenge to arbitral awards and other aspect of arbitration has been amended to make to more effective. The efficacy of this Act shall be tested in the years to come but surely will pave the way for faster adjudication of commercial disputes. Keywords: arbitration, appeals, award, dispute, litigation

INTRODUCTION Arbitration is an alternative dispute resolution (ADR) method where the disputing parties involved present their disagreement to one arbitrator or a panel of private, independent and qualified third party “arbitrators”. The process of arbitration was introduced as an alternative method of dispute resolution to ease the burden of courts which has backlog of huge commercial disputes. The main purpose of Arbitration law in India is to give speedy remedy to the parties to the dispute. The Arbitration and Conciliation Act was introduced to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation. The award of the Arbitrator is regarded as the decree of the court which is binding in nature. The importance of arbitration has also been enshrined in our constitution under Article 51 (d), the state has to endeavor to encourage settlement of international disputes by arbitration. The Act is based

on the 1985 UNCITRAL Model Law on International Commercial Arbitration and the UNCITRAL Arbitration Rules 1976. The Statement of Objects and Reasons of the Act recognizes that India’s economic reforms will become effective only if the nation’s dispute resolution provisions are in tune with international regime. India responded the recommendations of United Nations keeping in mind the role of foreign investors. Accordingly, India enacted the Arbitration and Conciliation Act 1996 in line with the UNCITRAL Model Law of Arbitration. The Statement of Objects and Reasons set forth the main objectives of the Act as follows: “(i) to comprehensively cover international and commercial arbitration and conciliation as also domestic arbitration and conciliation; (ii) to make provision for an arbitral procedure which is fair, efficient and capable of meeting the needs of the specific arbitration; (iii) to provide that the arbitral tribunal gives reasons for its arbitral award; (iv) to ensure that the arbitral tribunal remains within the limits of its jurisdiction; (v) to minimize

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Impact of Corporate Governance on Financial Performance of Indian Listed Companies on NSE Monika Bhuva*, Nailesh Limbasiya School of Management, R.K. University, Rajkot, Gujarat, India

ABSTRACT The main objective of this study was to investigate the effect of Corporate Governance on Financial Performance of Indian listed companies at National Stock Exchange of India Ltd. (NSE). Specifically, this study examined broad size, firm size, chairman, promoter’s holding all how the affect the financial performance of listed companies at NSE. Firm performance was measured using return on assets (ROA), return on equity (ROE), debt-equity ratio and current ratio. This study adopted descriptive research design. The study population of all the companies is including nifty-50 accepted financial sector’s companies as October 2017. Secondary data were collected using documentary information from company annual reports for the period 2016–2017. Both descriptive and inferential statistics were used. Data were analyzed using an ANOVA, independent sample t-test and correlation all calculated on SPSS. The study found that strong relationship between the corporate governance practices under study and firm’s financial performance. There was not much positive statistically significant between promoter’s holding and ROA and also ROE. There was positive relationship between firm size and chairman of the firm. Similarly, all ratios are affect the assets and board of directors, FII, public, shareholders also. Keywords: corporate governance practices, debt-equity ratio and current ratio, FII, financial ratios-return on assets, promoter’s shareholding in promoter

INTRODUCTION NIFTY 50 The NIFTY 50 is the leader list on the National Stock Exchange of India Ltd. (NSE). The Index tracks the conduct of an arrangement of blue chip organizations, the biggest and most fluid Indian securities. It incorporates 50 of the around 1600 organizations recorded on the NSE, catches roughly 65% of its buoy balanced market capitalization and is a genuine impression of the Indian securities exchange. The NIFTY 50 covers significant areas of the Indian economy and offers venture supervisors presentation to the Indian market in one productive portfolio. The Index has been exchanging since April 1996 and is appropriate for

benchmarking, file subsidizes and record based subordinates. The NIFTY 50 is possessed and overseen by India Index Services and Products Ltd. (IISL). IISL is India's initially particular organization concentrated on a record as a center item. Recorded 41 organizations as in addendums. Topic In mid-17 century, the idea of corporate administration does not exist. This is on the grounds that back then, possession was partitioned into modest number of individuals who likewise take an interest in the operations of the association. So, they can without much of a stretch control and protect their advantage.

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A Case Study on E-Governance in South Korea D. Kumar1*, N. Panchanatham2 1

Department of Management, Karpagam Academy of Higher Education, Coimbatore, Tamil Nadu, India 2 Department of Business Administration, Annamalai University, Chidambaram, Tamil Nadu, India

ABSTRACT The growth in technology is witnessed every day and advancements in the information and communication technology (ICT) have driven other sectors to be automated in a large context. Human mentality of simple and easing of work in all aspects is increasing including the Public Governance. The Governance in current scenario is much automated through ICT to provide quicker and transparent services to the targeted people. South Korea is one of the technologically advanced countries whether the ICT networks are much faster compared to the global average and the people are eager to adapt to the advancements. The South Korean Government has put lot of efforts in E-Governance for more than a decade to implement the current advancements in to Governance, thereby providing transparent and effective EGovernance in place for the country. This conceptual paper stretches its objectives for the study of South Korean e-initiatives, e-assessment in the infrastructure and various services available in the E-Governance to the people. Keywords: E-governance, electronic service, online services, ICT merits, information and communication technology

INTRODUCTION The growth in technology is witnessed every day and advancements in the Information and Communication Technology (ICT) have driven other sectors to be automated in a large context. Technology is considered as one of the main driver and enabler of changes towards advancement in a civilized community. In recent years, ICT availability has dramatically increased and involved across every sector. According to ref. [1], nowadays the international trend is towards online service delivery and greater citizen interaction, this interaction and service delivery can be achieved through the uses of new technologies. The EGovernment paradigm means rendering of government services and information to public using the electronic media. The new delivery modes of governmental services have brought a revolution in the quality of

services delivered to the citizens [2]. It has ushered in transparency in the governing process; saving the time due to provision of service through single window; simplification of procedures; better office and record management; reduction in corruption and improved attitude, behavior and job handling capacity of the dealing personnel. Modern trends have made the administrative systems become more and more information-based. This has profoundly altered the environment in which governments, citizens and other organizations operate. It has also impacted the way in which new systems are being designed. E-government innovation has been a central focus for the public sector; with national and local governments around the world aware of the potential of utilizing ICT to enhance their efficiency through access to information and providing public services electronically.

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Corporate Social Responsibility in Rural Development Preeti Gugnani* Department of Management, Ganga Institute of Technology and Management, Kablana, Jhajjar, Haryana, India

ABSTRACT According to 2011 census of India, out of total population of 121 crores, 83.3 crores people live in rural areas that count nearly 70 per cent of Indiaâ&#x20AC;&#x2122;s population. This population living in rural areas has neither adequate land holdings nor alternate service opportunities to produce or procure their livelihood. In the absence of adequate employment opportunities, the rural people are unable to generate enough wages to sustain their livelihood. In order to tackle and root out these specific problems, a number of rural development programs are being implemented by the governments to create opportunities for improvement of the quality of life of the people. It is a fact and the corporate have also understood it that there is a vast size and magnitude of rural market. So, the companies can take advantage of the situation by fulfilling their social responsibility. Corporate should augment their current charity efforts and utilize their business experience and capabilities to provide the required impetus to rural development and make valuable contributions in national development and prosperity. But the scenario has totally changed. Now sustainability, competition, environmental protection and finally customer delight have come in the picture. This paper tries to show that how national prosperity can be achieved through rural development and how corporate social responsibility plays an important role. Keywords: corporate social responsibility, economic welfare, opportunity, rural employment

INTRODUCTION Corporate social responsibility (CSR) can be described as the continuous commitment by corporations towards the economic and social development of communities in which they operate. The corporate houses and organizations are prominently doing a great job in the national interest ever since their inception. Earlier also the corporate sector has played a prominent role in the development of the country. And these efforts must be maximized. ROLE OF CSR IN RURAL DEVELOPMENT Corporate social responsibility is a process leading to sustainable improvement in the life of rural people. The rural developmental programs intend to reduce

the poverty and unemployment, to improve the health and educational status and to fulfill the basic needs such as food, shelter and clothing of the rural population [1]. Earlier some companies spent a huge amount on charities, donations and advertisements to generate goodwill in society. But such type of gimmicks had no long term positive effect on the people. Charity or donation is a selfless giving towards any kind of social need, but CSR is not a selfless act. Companies derive long term benefits from CSR. Today in India CSR has gone beyond merely charity and donation purposes. Now it has become an integral part of the corporate strategy. Companies organize their CSR activities through policies and strategies and set aside the budget to support their CSR programs. These CSR programs could