Piercing The Corporate Veil: Towards An Accountable Financial Sector - Couverture souple

Arunachalam, Ramesh S

Couverture souple

ISBN 10 : 1790626544 ISBN 13 : 9781790626540

Editeur : Independently published, 2018

Synopsis

A financial institution, or for that matter any kind of body corporate, is typically treated as a separate legal entity, independent of its key management personnel (including promoters), board and shareholders. This makes the financial institution/body corporate solely responsible for the debt it incurs and the sole beneficiary of the credit it is owed. The financial institution/body corporate as a legal entity is also responsible for its wide ranging actions and/or inactions.

Starting with the U.S. subprime of 2007/8, through the 2010 Indian microfinance crisis in Andhra Pradesh, and in a host of other situations, body corporates (be it banks, financial institutions and even regulatory bodies) have been at the forefront of major crisis situations. The most recent examples from India are the Infrastructure Leasing & Financial Services Limited (IL&FS) crisis of 2018 and the Punjab National Bank (PNB) scam of 2018.

When body corporates behave irresponsibly and without accountability and trigger a crisis, the key question that arises is whether the immunity granted to them on account of their independent legal status, which pretty much serves as a corporate veil, can be pierced. It is this aspect that the author, Ramesh S Arunachalam, attempts to analyze and answer through the course of this book. His earlier work on financial crisis situations, which has afforded him an intimate and in-depth knowledge of the various factors that trigger crises in the first place, makes him uniquely qualified to draw inferences and offer insights in this context.

In doing so, Ramesh provides answers to three key questions: (1) In the light of the four cases mentioned above, is it possible to derive a general framework of the circumstances under which the piercing of the corporate veil should become permissible? ; (2) What is the relationship between corporate governance, governance of compensation, governance of risk management, governance of audits, conflicts of interest, regulatory and supervisory failure and the concept of piercing the corporate (or regulatory) veil?; and 3) Can piercing of the corporate (or regulatory) veil enhance accountability?

The book also offers several practical ideas on when and how the corporate (or regulatory) veil can/should be pierced. Implications for policy are also clearly outlined in a pragmatic manner.

Détails de l'édition

• Éditeur: Independently published
• Date d'édition: 2018
• Langue: anglais
• ISBN 10: 1790626544
• ISBN 13: 9781790626540
• Reliure: Broché
• Nombre de pages: 266
• Coordonnées du fabricant: Manufactured by Amazon on behalf of the author; https://www.amazon.fr/hz/contact-us; ; c/o Amazon Media EU S.à.r.l., 38 Avenue John F. Kennedy; Luxembourg; L-1855; Luxembourg