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BOOK REVIEW |
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BOOK REVIEW |
Laws of Business A new book discusses
evolutionary process of business laws and corporate governance in Nepal By A CORRESSPONDENT The issue of corporate governance is a new phenomenon in Nepal. The country has hardly recognized the role of corporate sector in the overall economic development. Although the corporate sector was given certain role in the national development in the past, it was insignificant and inadequate. Since Nepal is passing through a new phase of economic liberalization, many difficulties have emerged in dealing with business and other corporate sectors. In absence of corporate laws and regulations, the policy makers are in a dilemma on how to deal with the corporate sector. Published by the Center for Development and Governance and Focal Point for Financial Sector Reforms, the book tries to fill the gap by discussing various phases of evolution of the legal and judicial framework for corporate governance. Along with debating on existing legal scenarios, the book also highlights the importance of corporate governance for vibrant and expanding economic sectors in light of the financial sector reforms. The book, among others, presents a less discussed, yet complex aspect of the role the legal and judicial system, which plays big role in the overall development process. Based on the colloquium organized to discuss the existing legal regime and judicial framework, the book is a compilation of the papers presented by economists as well as lawyers and judges. Academicians have expressed that an efficient, transparent and accountable legal and judicial system is imperative to enhance good corporate governance and hence foster economic development. Persons working in the legal and judicial areas have also expressed that they have certain shortcomings when it comes to dealing with corporate governance. "Development of a conducive legal environment, especially in the corporate sector, will pave the way for the transition of the private sector development. Legal and judicial reforms in Nepal should yield a properly crafted legal code, administered by a judge who renders judgments promptly, cheaply, and consistently to facilitate commerce and investment. There are high payoffs for the country in terms of economic efficiency and growth for having a sound judiciary backed by modern legal framework," said Professor Maskey and Tuladhar in the preface. In his paper making law work for business: a practitioner's perspective, corporate lawyer Bharat Raj Upreti discusses lapses and weakness in the judicial system. "The existing legal framework is not attuned to the business requirements of the day. Most of our laws are based on the allocating approach, restricting market forces in the matter of the allocation of resources. The procedural dimension of the existing legal system is discretionary," said advocate Upreti. 'There are huge gaps giving increasing discretionary power to the government agencies." Business communities, too, hold the view that the legal system needs to improve to meet the new challenges of corporate governance. "We are now at a stage where we all want to set up a system of governance that promotes sustainable human development. Sound economic governance presumes decision that directly or indirectly facilitate the creation of wealth, whose equitable distribution benefits everyone," said Rajendra Kumar Khetan, second vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI). "Good administrative governance is a system of policy implementation carried out through efficient, independent, accountable, and transparent public institutions." The persons involved in judiciary have their own grievances. "The corporate governance situation of Nepal has been seen primarily as a compliance issue rather than as a means of enhancing corporate performance," said Dr. Ram Krishna Timalsena, Joint Registrar, Supreme Court of Nepal. Along with the Nepalese scholars, professor John Adams of University of Virginia also presents a paper on Crafting Laws and the Judicial System in a Developing Economy. At a time when there are growing demands of books related to the corporate governance, the new book highlights all different perspectives on corporate governance. Business and Law In Nepal |
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editor: spotligh@mos.com.np |
