ArchiveJune 2014

MCA Clarifies on Status of Private Subsidiary of a Foreign Company

Earlier this year, we had raised and discussed a vexed issue under the Companies Act, 2013 (the 2013 Act) regarding “the status of a private company in India that is the subsidiary of a foreign company (being a public company). The specific question relates to whether the Indian private company can continue with its status or whether that would become a public company by virtue of becoming a...

SEBI Order on Delisting

A few weeks ago, we discussed SEBI’s proposals to overhaul the delisting regime. Evident from that discussion were difficulties faced in the current delisting regime. Some of those difficulties have surfaced in an order issued by SEBI yesterday involving the delisting of AstraZeneca Pharma India Limited. SEBI’s order alleges a concerted action between the controlling shareholder of the target and...

Shareholder E-Voting Requirements Deferred

India is one of the forerunners in mandating e-voting by shareholders. It was first introduced by SEBI for top listed companies, and then codified in the Companies Act, 2013 (section 108). However, due to operational difficulties and delays, the MCA last week issued a clarification postponing the mandatory nature of the e-voting requirements. It has also clarified certain operational matters...

Proposed Relaxations to Private Companies

One of the difficult tasks for any companies’ legislation is that it must be flexible and dynamic to be in position to deal with varying types of companies. Such companies can range from the one-person company, a private limited company, a public unlisted company to finally a public listed company. Despite widely differing characteristics that operate in each of these companies, the legislative...

US Supreme Court Decision on Securities Fraud Actions

The US Supreme Court yesterday issued its opinion in a significant case that determines the state of the law on class actions for securities fraud. The background and the issue in question have been set out in the ruling as follows: Investors can recover damages in a private securities fraud action only if they prove that they relied on the defendant’s misrepresentation in deciding to buy or sell...

Certification Courses in Corporate Law

[Student readers may be interested in the following certification courses in corporate law offered by Rainmaker] The Advanced Professional Certification in Corporate Law Practice is designed specifically for senior law students (4th or 5th year students in 5-year LL.B. courses, or final year students in 3-year LL.B. courses) and junior associates in law firms (with less then 2 years’ experience)...

MCA Clarification on CSR

The provisions of the Companies Act, 2013 and the relevant Rules thereunder relating to corporate social responsibility (CSR) have come into effect from April 1, 2014. Since this concept is novel in India from a regulatory standpoint, several difficulties are bound to rise in its implementation. Matters are compounded further because the nature of the Act and Rules are extremely prescriptive in...

Maestro Engineers Per Incuriam: The Supreme Court on the Arbitrability of Fraud

In its recent decision in Swiss Timing Ltd, the Supreme Court has dealt with some important questions relating to arbitrability in Indian law. Swiss Timing, a (as the name suggests) Swiss company, was engaged by the Organising Committee of the Commonwealth Games (‘Delhi 2010’) in 2010 to provide timing, score and result systems for the CWG (‘TSR Contract’). After the conclusion of the games...

SEBI Consultation Paper on Crowdfunding

We have previously discussed the concept of crowdfunding and the broad nature of the legal issues that it might give rise to. Essentially, crowdfunding that involves the issue of securities (equity or debt) would attract the provisions of company law as well as securities laws. While specific crowdfunding legislation has been introduced in several countries (e.g. JOBS Act in the US), there has...

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Recent Posts

Topics

Recent Comments

Archives

web analytics