Impact of American corporate law on Indian corporate law with special reference to disinvestment and privatization an appraisal

Abstract

American Corporate Law deals with shareholders, directors, creditors, employees and other stock holder. American system divided into three parts and these are legislative, executive and judicial for the regulation of corporate law. America gave finance to IMF and World Bank and has influence on them. newlineAfter 1947 Indian corporate law was in favour of public sector and there was less space for private sector. To empower India a big public sector was established under the direct control of states. Due to red tapism and lack of professionalism the public sector of India started giving negative response. After 1980s the economic and financial condition of India was going to down towards. In the end of 1990 Indian economy faced balance of expenditure problem and government was close to default. Central banks refused to new credit, foreign exchange reduced. newlineIn the year of 1991 India took help from IMF and started new economic policies called liberal policies. Disinvestment and privatization has started. India has some obligation towards the IMF and cannot make any law which is contrary to the international system of finance and regulation. Indian corporate law has direct influence of IMF. After adopted new policy the new corporate law which are enacted or amended after 1990 have influence of the provisions of American corporate law. For the requirement of regulation in security system Indian corporate law adopt similar provision of American corporate law.