Blog Posts
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MDs/WTDs crossing 70 years of age mid-tenure lose their jobs
[Posted by Jayant Thakur] The Bombay High Court has held that Managing/Whole-time Directors (“EDs”) will lose their jobs if they cross 70 years of age during their tenure of appointment. This is the new position of law under Section 196(3)(a) of the Companies Act, 2013, which came into effect from 1st April 2014, and which…
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Approval of Trade Facilitation Agreement in India – A Brief Overview
[Posted by Umakanth Varottil] [The following guest post is contributed by Ananya Banerjee, a 5th Year Student of University of Calcutta, Department of Law] In another effort to promote the ease of doing business in India and to create a more business friendly environment in India, the Union Cabinet has, on February 17, 2016, approved the proposal…
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SEBI debars Auditor
[Posted by Jayant Thakur] SEBI has, for the first time to my recollection, debarred an Auditor (Chartered Accountant) from issuing certificates for a wide range of entities and purposes. The matter concerned a listed company (“the Company”) that was alleged to have carried out several accounting irregularities such as inflated revenues/profits, misclassification of assets, etc.…
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Supersession of Bond Terms by State Legislation Disallowed
[Posted by Umakanth Varottil] In Kalyan Janta Sahakari Bank v. State of Gujarat, a division bench of the Gujarat High Court was concerned with whether a legislation passed by the Gujarat State Legislature can unilaterally alter the terms of an issue of bonds by the government company to the detriment of the bond investors. The…
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The Companies Law Committee on Section 117 and Appointment and Remuneration of Managerial Personnel
[Posted by Umakanth Varottil] [The following guest post is contributed by Amitabh Robin Singh, who is an Associate at DSK Legal] In an earlier post, this author had discussed the proposed changes made by the Companies Law Committee (“Committee”) to Chapter 3 (Prospectus and Allotment of Securities) of the Companies Act, 2013 (“2013 Act”). In this…
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Lalman v Gauri Dutt: Legend and Reality
[Posted by V. Niranjan] (The following guest post is contributed by Shivprasad Swaminathan, who is Associate Professor at the Jindal Global Law School) “As has often happened, in the law the case [becomes] more important not for what the judges said but for what the legal profession came to believe the case stood for.” P. Atiyah, Rise…
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Whether two Indian parties can derogate from domestic law in the context of arbitration
[Posted by Umakanth Varottil] [The following guest post is contributed by Abhik Chakraborty, Fourth Year, NUJS, Kolkata] In September 2015, the Madhya Pradesh High Court in Sasan Power Ltd. v North American Coal Corporation held that two Indian parties can opt out of domestic law in the context of arbitration. On the contrary, in June…
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Summary: Recommendations of the Companies Law Committee
[Posted by Umakanth Varottil] [The following post is contributed by Bhushan Shah and Labdhi Shah from Mansukhlal Hiralal & Company] The Companies Act, 2013 (2013 Act) was enacted with a view to bring Indian company law in tune with global standards. However, as is the case with every new legislation, the enactment of this Act also led…
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Cashless Employee Stock Option Scheme and Insider Trading Regulations
[Posted by Umakanth Varottil] Last year, the Securities and Exchange Board of India (“SEBI”) issued a guidance note clarifying certain matters regarding employee stock option plans (ESOPs) and their implications under the SEBI (Prohibition of Insider Trading) Regulations, 2015 (the “Insider Trading Regulations”). Specifically, it stated that the “contra-trade” restrictions do not apply to the…
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Adoption of Indian Accounting Standards (Ind AS) by Banks, Insurance Companies and NBFCs – Effects of Transition and Potential Hurdles
[Posted by Umakanth Varottil] [The following guest post is contributed by Arka Saha, who is a 4th Year B.A.LL.B. (Hons) & Executive Student in CS (ICSI) at National Law University Odisha (NLU-O)] To bring about systemic convergence of financial reporting standards in vogue in the case of Indian banking companies, Insurance companies and Non-banking Financial…