CONVERGENCE OF CORPORATE GOVERNANCE SYSTEMS: GOOD OR BAD?

 Abstract: The progress achieved by the field called Corporate governance is tremendous. In the past few decades, reforms in corporate governance reforms have emerged as an important center of corporate law in countries across the globe. With the recent developing trends of globalization, it has been presumed by many scholars that these corporate laws will „merge‟ or „converge‟ gradually. Though theoretically it all sounds good that it will create a free flow of capital but the practically, implementation of such convergence will not be possible and ideal. Why will any nation state want to adopt a single set of corporate governance rules by keeping aside its own diversity and unique way of cultures and values? Different nations have different economic stability and interests according to which a corporation is set up. Now there are different models (outsider and insider) which have come up like Anglo-USA, Japanese and German model which we can broadly study under few important heads. The idea of having a perfect model itself is good or bad for all jurisdictions is the question. The researcher intends to analyse whether convergence of corporate governance will be good or bad.The paper also tries to connect the concept of convergence with the neo-liberal school of thought and then examine whether it will be useful or not. The researcher is more inclined against the concept of convergence, for which exhaustive arguments are also being given. Also, the ideas of various scholars and their proposals will also be taken into consideration.