The Thriving Dispute of Corporate Fraud and it’s Supremacy Over Other White-Collar Crimes

Abstract-

Corporate Fraud has always been side-lined by our society as the impact of it, is not understood by many. The media has always given more attention to blue-collar crimes as they hold the attention of people more than white collar crimes. Most of the people believe fraud to be a part of business and don’t realise the consequences which will affect them. Being unaware about such topics makes a person vulnerable to these crimes as unlike other crimes, corporate fraud can affect any number of people. The social and economic effects of Corporate Fraud is immeasurable as the number of people affected is enormous. Fraud has been present in our world since time immemorial, even with proper laws corporate fraud has not shown any intention of slowing down. It has quickly spread its wings aggressively affecting our global economy. The influential people are mostly behind these frauds which makes it difficult to detect it or find any evidence relating to it. Hence there is often no conviction in these cases. The prevention of these frauds in the earlier stages is of utmost importance to make sure the company is safe from fraudulent activity. Corporate Fraud is a very serious issue and it should be treated as such before it becomes a norm for employees or executives to participate in unethical ways to gain more money. Some of the cases of Corporate Fraud such as Enron scandal or the Saradha group scam are good examples to understand the seriousness of this crime. This article briefly explains the effect of corporate fraud in our world economy with the help of some well-known corporate frauds which have previously done some serious damage to the respective country’s economy which in turn affected the economy globally.

Authored by A. Keerthikah, SOL, Mumbai University

Demerger Regulations in India

Abstract:

“Demerger” can be defined as the division or division of a company into multiple companies. New, transferable companies do not have to be parental corporations that have been split or disbanded. The New Oxford Dictionary defines “demerger” as “to divide a large company into two or more entities.”Justice NV Balasubramanam noted that the Dismissal Scheme is a corporate partnership in two or more areas, thus retaining some of it and transferring the rest to the company or companies to which it has led. It is a business plan. The term ‘demerger’ is not defined in the Companies Act, 1956.

Authored by Rupa Paul, Amity University, Kolkata.

A STEP TOWARDS ENHANCEMENT OF CORPORATE GOVERNANCE: PROVISIONS FOR FRAUD

Abstract:

The article is on one of the most important and emerging areas of jurisprudence in corporate law that is on the issue of corporate fraud. Its contribution in strengthening the corporate governance structure of the country is analysed. Whenever the headlines about corporate fraud surface, the trust reposed in the corporate entities gets affected. It therefore, becomes pertinent to note how the corporate law deals with this menace of fraud that has permeated in to the transactions and leads to lowering down of confidence of investors and shareholders.

Authored By Rishab Aggarwal & Harshil Vijayvargiya, Gujarat National Law University.