Corporate Governance Regulations and Practices under COVID-19 Crisis: Time to Rethink

Abstract

The COVID-19 has brought the challenge of survival for all the companies around the globe. This pandemic totally changed the procedures of managing and governing the firms with the help of regulations of the state. The said disaster has also hit the existence of the major companies in different sectors of the economy. Consequently, it has drawn the attention of all the practitioners of the Corporate Governance along with the policy makers of the economy. The focus of this article is to see the utility and practicability of different regulations and practices of the corporate governance to cope with the current emerging challenges of COVID-19 in corporate sector. Furthermore, the current study takes some valuable insights from the leading business journal articles and find the key mechanisms of the corporate governance, which help the companies to deal with the recent crisis. These mechanisms could be effective for the different business units during this dilemma of COVID-19. This review intends to change the management philosophy of the different companies. Furthermore, this study aims to provide them with the latest mechanisms of corporate governance, which are helping the companies for their successful progression of business affairs in this tough time of Corona Virus. These mechanisms include presence of risk management committee, more attention to the stakeholders, family ownership, and block holders. This paper concludes that all the above said mechanisms of corporate governance are very helpful during the crisis of COVID-19. The study highlights that this pandemic has affected the governance mechanisms of al the establishments, therefore firms should be prepared for such crisis in future by paying attention to the different corporate governance mechanisms. The study recommends that certain practices of the corporate governance are very helpful in coping the challenges posed by the pandemic of COVID-19.