[C. H. Anvita and Anirudh Venkatesh are 4thYear BA LLB (Hons.) students from School of Law, Christ (Deemed to be University, Bengaluru] Background The Mumbai bench of the Income Tax Appellate Tribunal (“ITAT”) has, in two sequential decisions in the months of January and May, 2018[1] (in which, the latter case reiterated the reasoning and decision of the former), reignited discussions on the...
New issue/transfer of securities in unlisted public companies now to be only in demat form – step towards curbing benami holding/convenience of demat
MCA has inserted a new Rule 9A to Companies (Prospectus and Allotment of Securities) Rules, 2014, requiring unlisted public companies from 2nd October 2018 to issue/transfer shares only in demat form. They are also required to register with a depository and give facility to existing shareholders to convert their shares to demat form. In case of a fresh issue or buyback of securities, the...
Fast Track Debt Resolution Programme – Achilles Heel Of The Insolvency And Bankruptcy Code
[Tushar Kumar is a 4th Year BA LLB (Hons.) student at Dr. Ram Manohar Lohiya National Law University, Lucknow] The Ministry of Finance, in July 2018, accepted the recommendations of a committee constituted for review on Non-Performing Assets of Public Sector Banks, headed by Sunil Mehta (Non-Executive Chairman of Punjab National Bank) proposing “Project Sashakt”, calling for a five-tier approach...
The Vodafone Anti-Suit Injunction – A Cautionary Note
[Siddharth S. Aatreya is a V Year B.A., LL.B. (Hons.) Candidate, National Law School of India University, Bangalore] In May 2018, the Delhi High Court issued its judgment in Union of India v Vodafone Group plc. The judgment vacated an interim order that had been passed in August 2017, by which the Court had temporarily restrained Vodafone from commencing arbitration proceedings under the India-UK...
Impact Analysis of Committee Recommendations on Offences under the Companies Act
[Gaurav Pingle is a practising Company Secretary in Pune and can be reached at [email protected]] The Government of India had constituted a Committee to review the existing framework dealing with offences under the Companies Act, 2013 (‘Act’) and related matters. The Committee was also required to make recommendations to promote better corporate compliance. The Committee submitted its final...
The Rise and Fall of the Financial Resolution and Deposit Insurance Bill
[Apoorv Madan and Rushil Anand are fourth year B.B.A. LL.B. (Hons.) students at Jindal Global Law School in Sonipat] Background It may be considered common knowledge, at this time, that failure of some financial institutions can have far-reaching implications on economies, sometimes resulting in full-blown financial crises. Further, because of the increasingly interconnected and globalised world...
Juristic Persons and the Embargo under Section 29A(d) of the Insolvency and Bankruptcy Code, 2016
[Rishabh Sinha is a 4th year B.A. LL.B. (Business Law Hons.) student at National Law University, Jodhpur] Introduction The National Company Law Appellate Tribunal (NCLAT) recently interpreted section 29A(d) of the Insolvency and Bankruptcy Code, 2016 (the Code) in Renaissance Steel India Pvt. Ltd. v. Electrosteels Steel India Ltd(10 August 2018). In this case the appellant had challenged the...
Resolution of Disputes in the Insolvency Code: Need for Appellate Review
[Shubham Jain and Vishvesh Vikram are BA.LLB (Hons.) students at National Law University Delhi] The limits of the discretion which can be exercised by a resolution professional with regard to adjudication of claims of creditors under the Insolvency Code remain to be tested. The National Company Law Appellate Tribunal (‘NCLAT’) in Saraogi Udyog v Vedanta Ltd (20 August 2018) refused to interfere...
SEBI’s new requirement for separation of post of Chairman/CEO – cosmetic and harmful
SEBI had recently amended Regulation 17 of the SEBI LODR Regulations 2015 by inserting a new clause (1B). The clause requires that top 500 listed companies in terms of market capitalisation should have a Chairperson who (i) is a non-executive director; and (ii) is not related to the Managing Director or CEO. This was SEBI’s version of the popular western corporate governance good practice of...
Venture Global v. Tech Mahindra – Complicating the Public Policy Debate under Indian Arbitration Law
[Siddharth S. Aatreya is a V Year B.A., LL.B. (Hons.) Candidate at the National Law School of India University, Bangalore] Introduction The public policy ground for challenging an arbitral award has been the subject of much controversy in India. In the Supreme Court’s decision in Venture Global v. Tech Mahindra (2017) two issues within this broad area entered the spotlight – the applicability of...
Recent Comments