ArchiveJuly 2011

The Use of “and/or” in Legal Documents

Many of us have been dissuaded at one time or the other from using the expression “and/or” in legal documentation. Despite inherent ambiguities, its use continues to be quite extensive. I came across this interesting piece containing detailed research on the topic, with the unequivocal conclusion: desist from using it.

Changes to Takeover Regulations

SEBI has approved most of the changes suggested by the Takeover Regulations Advisory Committee (TRAC) last year to the Takeover Regulations. The key changes are summarized in SEBI’s board note:a) Initial trigger threshold increased to 25 % from the existing 15 %. b) There shall be no separate provision for non-compete fees and all shareholders shall be given exit at the same price. c) In cases of...

Maiden Order under Merger Control Regulations

Legally India has reported the issuance of the first order by the Competition Commission of India (CCI) under the Combination Regulations that came into force on June 1, 2011.CCI’s order considers the acquisition by Reliance Industries Limited and Reliance Industrial Infrastructure Limited (the Acquirers) of the 74% stake held by the Bharti Group in each of two joint venture insurance companies...

UNCTAD’s World Investment Report 2011

There have been several reports in the recent past about the continuing slide in FDI inflows into India. This has been confirmed by UNCTAD’s World Investment Report issued yesterday in which India’s ranking on FDI inflows has slipped to 14th in the world from 8th place last year. The report states the following reasons:FDI to South Asia declined to $32 billion, reflecting a 31 per cent slide in...

Supreme Court on Arbitrator’s Powers to Grant Interest

A recent decision of the Indian Supreme Court considered the important question of the scope of an arbitrator’s powers to grant interest, and the extent to which this power may be limited by contract. The issue before the Court in Union of India v Krafters Engineers was fairly straightforward- when the arbitration agreement limits the powers of an arbitrator to grant interest, is it an absolute...

Gender Diversity on Corporate Boards

We have been examining the “mandatory vs. voluntary” debate with respect to corporate social responsibility (CSR). A similar debate has arisen with participation of women on corporate boards. Some countries (particularly in Europe) are adopting mandatory quota requirements. Others are adopting a voluntary approach, for example in the UK where executive search firms have published a voluntary code...

Further Steps in Allowing FDI in Retail

Last week, the policy making machinery within the Government took the farthest steps so far towards permitting FDI in multi-brand retail. Reports indicate (here, here and here) that majority foreign ownership (up to 51%) will be allowed, although this is likely to be accompanied by a number of conditions including minimum foreign investment (said to be $100 million). Although further procedures...

Good Faith in English Contract Law

Over the past few years, the traditional distinction between the common law and civilian notions of good faith in the law of contract has been blurred. However, instead of incorporating a general obligation of good faith in contract, English law has adopted a piece-meal approach, by accepting the obligation of good faith in insurance contracts, when fiduciary relationships are involved, when...

Enforceability of “Side Letters”

Background It is customary for parties to enter into “side letters” in corporate and commercial transactions. Side letters are documents which are ancillary to the principal transaction documentation. There are a number of reasons why parties could potentially enter into side letters, rather than include their subject matter in the principal documentation. Side letters are useful when parties...

Announcements: Calls for Papers

(The following announcements may be of interest to our readers although they do not directly relate to the subject-matter of this Blog)A. Socio-Legal ReviewSocio-Legal Review welcomes contributions for its eighth volume to be released in 2012. About the Journal The Socio-Legal Review (SLR) is a student-edited, peer-reviewed interdisciplinary journal published annually by the Law and Society...

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