Month: December 2014
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Derivative Action for Patent Infringement Disallowed
[Posted by Umakanth Varottil] Spicy IP has a post discussing a judgment of the Bombay High Court in Darius Rutton Kavasmaneck v. Gharda Chemicals Limited, which involves a derivative claim by a shareholder of a company that traverses issues of company law and patent law. In disallowing the claim, the Bombay High Court dealt with…
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Insider Trading and Tippee Liability
[Posted by Umakanth Varottil] In recent times, there has been a lot of discussion about how the regulators and the prosecution have been enormously successful in obtaining convictions in insider trading cases in the U.S. That momentum may have been somewhat restrained by a ruling of the United States Court of Appeals for the Second…
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Reverse Cross-Listings: Foreign Companies Accessing the Indian Capital Markets
[Posted by Umakanth Varottil] Corporate and capital markets laws in India have allowed foreign companies to list in India in the form of Indian depository receipts (IDRs). While this facility was allowed with much fanfare, it has been accessed so far by only one company, i.e. Standard Chartered Bank. However, more companies might likely follow…
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Repeal of the “Swaps Push Out” Rule— An Evaluation
[Posted by Umakanth Varottil] [The following post is contributed by Mandar Kagade, who is a Policy Analyst at the Bharti Institute of Public Policy, Indian School of Business] The United States Congress recently passed the Consolidated and Further Continuing Appropriations Act, 2015 that made headlines for reasons not at all related to appropriations; it was…
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Disqualification of Directors: A Dichotomy in the Companies Act, 2013
[Posted by Umakanth Varottil] [The following post is contributed by Nivedita Shankar, who is a Senior Associate at Vinod Kothari & Company. She can be contacted at nivedita@vinodkothari.com] In case a director were to incur disqualification under section 164(2) of the Companies Act, 2013 (the “Act, 2013”), then such director shall not be eligible to…
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Winding-up Petitions and Arbitration Clauses
[Posted by V. Niranjan] The relationship between the statutory remedies provided by the Companies Act and the Arbitration Act has proven to be controversial in recent times. The difficulty arises usually because the basis on which the statutory remedy is invoked (eg oppression, winding-up) is often an underlying commercial dispute which is the subject matter…
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Flexibility for Investments by Trusts
[Posted by Umakanth Varottil] Trusts in India are governed by a colonial-era legislation, the Indian Trusts Act, 1882. This legislation severely restricts the investments that trustees may make out of trust funds. Section 20 of the Trusts Act provides a list of instruments into which the trustees could invest the trust funds. These include securities…
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Paper on Limited Liability Partnership Law in India
[Posted by Umakanth Varottil] Professor Afra Afsharipour has a paper titled The Advent of the LLP in India, the abstract of which is follows: In 2008, India passed a ground-breaking law to introduce the Limited Liability Partnership form into Indian business law. The Indian LLP Act was the first major introduction of a new business…
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Revised FDI Norms for Construction Notified
[Posted by Umakanth Varottil] Last month, we had carried a guest post summarising and commenting upon the changes to the FDI norms in the construction industry, which relaxed several conditions. Now the Department of Industrial Policy and Promotion (DIPP) has made these changes effective in the form of Press Note No. 10 (2014 Series).
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Proposed Amendments to the Companies Act, 2013
[Posted by Umakanth Varottil] It has been just a year since certain provisions of the Companies Act, 2013 (the 2013 Act) were brought into force, and the Government has already yielded to pressure from industry to address some concerns within the legislation. The Union Cabinet has approved the introduction of the Companies (Amendment) Bill, 2014…