From the case, what according to you is the key corporate governance

concern in emerging markets like India?

Emerging markets have increasingly become drivers the global growth engine
becoming the focus of the investment community. There is difficulty in establishing
causality in the corporate governance and market value, performance of an
organization. Some of the issues facing the emerging economies are
1.Dilemma of short term returns vs long term value
2. Drawing a line between board oversight and micro-management
3. Loopholes in the corporate by-laws and shareholder litigation
4.Proxy advisory power and influence
5.Societys trust in corporation
6.Shareholders activism and its impact on board decisions.
Corporation go beyond wealth creation and contribute to the society in the form of
employment, support innovation, purchase of goods and services, tax revenue and
CSR programs. Hence the integrity of the people running such organizations is of
utmost importance in order to develop an environment of trust with customers,
employees, regulators and investors.

There are several reasons that contributes to the corporate governance issue
and
are fundamentally very important, like Quality of public governance: It affects the level of law enforcement, and in
turn, the extent of bribery and other types of corruption
Product market competition: It is different in emerging countries from that
of
already emerged countries, hence a more critical problem in Emerging
countries
Ownership: In countries where state ownership is common, the incentives
and the quality of government officials and regulators are key determinants
of corporate behavior.
Legal Issues: Financial market development is often hampered by weak
legal
foundations and enforcement. As a result, the controlling shareholders invest
their free cash in new businesses that they control.
The Case-Flex Industries Limited raise many questions on the power of public
shareholders and the checks and balances that the policy-making board-ofdirectors
implement. Corporate governance was and will continue to remain a debated
topic
among investors to ponder upon in future also.