MAINS 2015
GS2
12.5 marks
In the light of the Satyam Scandal (2009), discuss changes brought in corporate governance to ensure transparency and accountability.
WRITE IN
9 min
200 words
What the examiner wants
Discuss changes made in corporate governance after the Satyam scandal to improve transparency and accountability.
DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1Satyam (2009): about Rs 7,000 crore accounting fraud; failure of auditors and independent directors≈35 words
- 2Companies Act 2013: independent directors with duties, auditor rotation (Section 139), class action suits (Section 245), SFIO statutory, NFRA (Section 132), CSR≈35 words
- 3SEBI: LODR Regulations 2015, Kotak Committee (2017) - board independence, related-party rules≈35 words
- 4Gaps: IL&FS (2018), promoter dominance, weak enforcement≈35 words
Open in about 30 words and close in about 30.
Answer plan
Satyam failure pointsCompanies Act changesSEBI changesRemaining gapsConclusion
Where marks usually go
- Narrating the scandal at length
- Not linking each reform to a Satyam failure
Draw this
- Table: Satyam failure → reform that addresses it
Value addition
- LawThe National Financial Reporting Authority, under Section 132 of the Companies Act 2013, was set up in 2018 to regulate auditors.Companies Act 2013
- CommitteeThe Uday Kotak Committee on Corporate Governance (2017) recommended stronger board independence and separating chairperson and MD roles.SEBI, 2017
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Aditya Srivastava · AIR 1 · Page 32 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 13 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 41 ↗Same syllabus reference
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