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Good Governance Lies Between Founders’ Hubris And Overvaluation: Mohandas Pai

The recent blow-ups in many start-ups are a result of the founders’ vanity and their failure to understand the basic obligations of public shareholding

The relationship between a publicly listed company and its shareholders is based on many important fiduciary obligations. For the company to fulfil these obligations, a certain standard of corporate governance is required. In the recent past, we have seen many new-age start-ups failing to meet these governance standards, which resulted in souring of shareholders’ sentiments and markets reacting accordingly.