On corporate accountability, the principal-agent relationship between the management or those who wrest ownership and control and the shareholders as actual owners is rather weak. We have seen asset stripping and bankruptcies in this weak environment. This has been especially true where a complex web of companies within business groups prevail.
There is a strong case for simplifying these structures that are often developed to evade taxes, indulge in regulatory arbitrage and to strip assets of the firm for personal use. In recent period, we have come across instances where corporate debt restructuring is sought but ownership commitment of those who have control is rather left weak.