[Paras Ahuja is a third year law under-graduate at National law University, Jodhpur] Section 167(1) of the Companies Act, 2013 provides for several grounds that mandate directors of companies to vacate their office. Section 167(1)(a) provides for one such ground, wherein the office of the director shall become vacant if he is disqualified to be a director under section 164 of the Act. Under...
Price Gouging in the Age of Coronavirus: An Analysis of the Regulatory Strategies
[S.S. Shri Lakshmi is a 3rd year student at Hidayatullah National Law University, Raipur (HNLU)] Amidst all the panic caused by the current novel coronavirus (COVID-19), the international economy has suffered a beating. Factories across China have closed, bringing exports to a halt and oil stocks have plummeted due to a drastic cut in travel. At the same time however, specific industries have...
Call for Papers: SRDC ADR Magazine from GNLU
[Announcement on behalf of the GNLU Student Research Development Council] About SRDC The Student Research Development Council (‘SRDC’) was established in 2014 as a platform for students to engage in collaborative academic research and to foster discussion around contemporary research questions in law and allied disciplines. Objective of the SRDC ADR Magazine The ADR Student Research Group, under...
Liability of Key Personnel of Companies under the Indian Competition Law Regime
[Nishant Pande is a IV Year, BA LLB (Hons.) student at NALSAR University of Law, Hyderabad] Personnel at the helm of a company’s decision-making ought to act in furtherance of its best interests. Nevertheless, the actions taken in search of this best interest sometimes bring the company’s practices into the realm of the anti-competitive. To account for such transgressions on behalf of the key...
Call for Papers: NLSIU’s Indian Journal of Law & Technology
[Announcement on behalf of the Indian Journal of Law & Technology] The Indian Journal of Law & Technology (IJLT) is now accepting submissions for Volume 16. Please send in your submissions before April 15, 2020 in order for them to be considered. About the Journal The Indian Journal of Law and Technology (IJLT) is a student-edited, peer-reviewed, completely open access law journal...
Disqualification of Directors: Construing Retrospectivity
[Aditya Singh Chauhan is a B.A. LL.B (Hons.) student at the National Law University, Jodhpur] The Companies Act, 2013 (“Act”), under section 164(2)(a), provides for the disqualification of directors of a company in case they fail to file financial statements and annual returns for a period of at least three (3) consecutive financial years. The provision reads as follows: “No person who is or has...
No Stamp Duty or Registration Fees on Conversion from Public Company to Private Company: H.P. High Court
[Deepika Shori and Madhusudan Bose are Advocates at PRA Law Offices] Stamp duty is ordinarily payable on transfer of movable and immovable properties, and several other specified transactions under stamp duty law. Corporate transactions such as mergers, amalgamations, slump sales and the like are naturally liable to stamp duty because they involve transfer of properties between two entities...
MCA Clarifies on Legal Actions against Outside Directors
Recognizing the specific roles that different directors of a company play, section 149(12) of the Companies Act, 2013 contains a safe harbour provision that protects certain types of directors against liability. It relates to three types of directors, who are, for the sake of convenience, referred to as “outside” directors: (i) an independent director; (ii) a non-executive director who is not a...
Enforcing a Pledge over an Insurance Company’s Shares
A transfer of shares of an insurance company requires the prior approval of the Insurance Development and Regulatory Authority of India (IRDAI) in certain circumstances. Section 6A(4)(b)(iii) of the Insurance Act, 1938 provides: “(4) A public company as aforesaid which carries on life insurance business- … (b) shall not register any transfer of shares … (ii) where, after the transfer, the total...
Reverse CIRP: Reflections on NCLAT’s Legal Experimentation
[Ankit Tripathi is a practicing advocate before the Supreme Court and Delhi High Court and Ravleen Chhabra is a final year student at Institute of Law, Nirma University] A recent ruling of the National Company Law Appellate Tribunal (“NCLAT”) in Flat Buyers Association v. Umang Realtech Pvt. Ltd. comes as a game-changer. It not only affects the existing corporate insolvency resolution process...
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