A Critical Assessment of the Role of Directors in Corporate offences

The contemporary crisis of crony capitalism springs up
from the basic issues of the privatization of public institutions, and unilateral consumption of natural resources for the elusive economic advantage by all nations. The present trend by many nations is that they are giving primacy to artificial or juristic persons, such as multinational companies, public-private partnerships and joint ventures etc, as against the life and liberty of individual human being. The justification though sounds good, in practice it resulted in a spurt of economic offences and corrupt society infested with nepotism. The liberalization of economy in 1991 opened the flood gates of family controlled corporate governance businesses in the latter years, the corporate sector in India dominated by familieswho continued to keep all decision-making
authorityin their hands in the name of directors and at the cost of equity share holders. The general trend has been to
create as many as subsidiary companies or independent dummy companies manned by their family members and transfer company funds into other family owned businesses.