After dealing with the history of hostile takeovers in India and possible regulatory obstacles, Shaun’s article moves on to deal with what I find is an interesting analysis of the availability of some of the key takeover defences in the Indian context. I highlight some of his observations (and also intersperse some of my own) below: 1. Poison Pill A poison pill is a shareholder rights plan...
Hostile Takeovers in India: Opportunities and Challenges (Part 1)
Hostile takeovers of companies (otherwise referred to as the market for corporate control) is a rather well-known phenomenon in the corporate sphere. The 1980s (a.k.a. the deal decade) were famous in the US for large hostile transactions that set fire to lawyer ingenuity resulting in the development of various takeover defences. Hostile takeovers continue to pose a threat to companies – even as...
Competition Act: Cementing Law and Policy
Rahul Singh, who will be contributing to this blog, has written in Livemint about the adverse effects of the delay in notification the provisions of the Competition Act. To enunciate this point, he uses the example of the rise in cement prices, which had to be arrested through the threat of takeover by a state government. Another aspect that Rahul alludes to is the role that consumers must play...
Contributor: Rahul Singh
It is my pleasure to introduce our new contributor, Mr. Rahul Singh. Rahul Singh () is Asst. Professor of Law at the National Law School of India University, Bangalore where he teaches Competition Law & Policy, Securities Regulation, WTO and Jurisprudence. He also lectures as a visiting faculty at numerous other places, including, the Indian Institute of Management (IIM), Bangalore, IIM...
SEBI Reigns in Art Funds
Art funds have become a popular alternative investment avenue in India (see news reports in Moneycontrol India and Rediff Money). In a communication titled Message for Investors, SEBI has announced that art funds are collective schemes and will therefore fall within the purview of SEBI regulations. Here is the relevant extract: “This message is issued by SEBI in the interest of investors with...
The “Par” Has Lost Its Value
Indian company law includes several concepts that have become archaic. Efforts have been made to address this issue and to modernize company law – some the recent ones include a Concept Paper prepared by the Ministry of Company Affairs in 2004 and the JJ Irani Committee Report presented in 2005. However, these changes are yet to see the light of day. This blog will periodically carry a discussion...
On Being a Corporate Lawyer
The Harvard Law School Corporate Governance Blog carries a post regarding a lecture by John C. Coates titled “On Being a Corporate Lawyer” that he delivered on being appointed the John F. Cogan, Jr. Professor of Law and Economics. A webcast of the lecture is also available. Coates talks about trends in current corporate law practice and shares his thoughts on what the future holds. Having been a...
Limited Liability Partnerships: Some Developments
While it is reported that the Limited Liability Partnership Bill is likely to be cleared during the Budget session of Parliament, there have been some interesting developments that will make limited liability partnerships (LLPs) attractive, at least to some types of business. The first relates to multi-disciplinary partnerships (MDPs). The Economic Times reports: “India can soon boast of its own...
Tax Benefits for REITs Likely
An earlier post on this blog had stated that the success of REITs in India would depend upon the availability of tax benefits to the REIT vehicle in the form of a tax pass-through. The Economic Times reports that SEBI has made out a case to the Government seeking that REITs be taxed in the same manner as mutual funds. The news report states: “The income-tax law now provides for a pass-through...
Minimum Public Float in Listed Companies
An area that has left an ambiguous trail over the years has been the amount of public shareholding that is required in a company at the time that it embarks on a listing and thereafter on a continuous basis. Numbers for public shareholding limits have, in the past, ranged from 60% to 40% to 25% and finally to 10%. After a chequered history, the rules have finally resulted in its current position...
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