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Asian Paints Limited: Corporate Governance Blues

Ram Subramanian

Product #:W27942
Supplier:Ivey
Discipline:Strategy
Setting:India, 2021
Details:Case (PDF) • 13 pages • 2022-07-25

Subjects:

Corporate governanceBusiness managementStrategy

Industries:

Fabrication and manufacturing

Geography:

AsiaIndia
Your Price:$10.54

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On December 29, 2021, the independent shareholder advisory firm InGovern Research Services (InGovern) published a report accusing Asian Paints Limited (APL) of corporate governance lapses. Nearly 53 per cent of the shares of APL, which was based in Mumbai, India, were owned by its promoters and their families. InGovern had followed up on a whistle-blower’s report claiming that APL had engaged in several related-party transactions but had failed to adequately disclose them in its annual report. InGovern demanded large-scale changes in APL’s board of directors, and APL’s share price fell by approximately fourteen per cent after the charges were made public. The seven independent members on the company’s board had to respond to the accusations.

Learning Objectives

This case can be used in undergraduate- and graduate-level courses on strategic management. Because corporate governance is usually discussed in the second half of such courses, the case should be assigned after these topics have been covered in class. After working through the case and assignment questions, students will be able to do the following:
  • Understand the concept of corporate governance.
  • Contrast corporate governance practices between developed and emerging economies.
  • Assess choices relating to addressing issues dealing with majority and minority shareholders.
  • Develop recommendations for issues related to processes and disclosure for good corporate governance.
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Case Study: Asian Paints Limited: Corporate Governance Blues (English version) | Ivey Publishing