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The State in Business and the Business of Regulation
This article seeks to dispel the notion that the law treats public sector units preferentially only in India by offering examples of preferential treatment for government-owned entities in developed countries. The solution is, therefore, to secure the credible commitment of the state to subject its corporations to the same standards as are applicable to non-state owned entities.
The public shareholders of the State Bank of India (SBI) were reportedly upset with the absence of e-voting facilities in the extraordinary general meeting convened by it. The SBI reportedly clarified that it cannot provide e-voting facilities unless the Sate Bank of India Act (SBI Act), 1955 is amended by Parliament (Subramanian 2016). This is inaccurate as the conduct of shareholders’ meetings of the SBI, including the manner in which shareholders may vote at such meetings, is governed by the State Bank of India General Regulations, 1955. These regulations are not a primary law framed by Parliament, but a delegated legislation which the board of SBI is empowered to amend.1
Conflict of Interest
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