The intent of the law makers is to be carried out in letter and spirit in complying with the regulatory requirements of Corporate Governance in a corporate. Elaborate this statement with explanations.

Good Corporate Governance demands compliance levels that match the intentions of legislature, expectations of stakeholders and requirements of regulators. The compliances, however, generally found to fall in three categories, i.e., Apparent Compliances, Adequate Compliances and Absolute Compliances. Apparent compliance is a disguise form of non-compliance, which is worse than a non-compliance. The classic example for Apparent Compliances are generating documents such as notice, agenda, minutes on papers for board and general meeting which are not actually held. Adequate compliance is compliance in letters. The aspects specified in law are complied in letters, without getting into the spirit of the law, e.g. box ticking practices. Absolute compliances are those which are in line with the spirit and intent of the law. A typical example in this regard is demonstrating shareholder democracy as prescribed by law. When a company complies with law in spirit it gains public confidence as well. In order to attain corporate sustainability and to ensure a level playing field with international market, corporates need to necessarily increase their level of compliance from apparent to adequate, thereby leading to the level of absolute compliances.