[Shreshtha Mathur is a fourth year law student at National Law University, Jodhpur] A statutory auditor is appointed by a company according to the statutory requirement, in order to inspect and form an opinion about the fair presentation of a company’s accounts. Section 139 of the Companies Act, 2013 mandates that every company must appoint an individual or a firm as an auditor at its first...
The Effect of an Increased Free Float on India’s Promoter-Controlled Companies
[Shiluti Walling is a 4th year B.A., LL.B. (Business Law Hons.) student at National Law University, Jodhpur] The Union Finance Minister recently proposed the increase of the minimum public shareholding (MPS or free float) from 25% to 35%. Prior to the proposal, public shareholders of a listed company were required to hold at least 25% of the paid-up capital of the company as free float, pursuant...
Liquidation Regulations: Far-Reaching Changes to Make Liquidations Faster, Smoother
[Vinod Kothari is an insolvency practitioner at Vinod Kothari & Co and can be reached at [email protected]] The attention that reforms in liquidation regulations has received, relative to what has gone into the case of resolution, is far lesser than deserved, given the percentage of the resolution cases that slip into liquidation. Most of the major liquidations initiated 12 to 18...
NCLAT’s Order in Essar Steel: Implications of Proposed Amendments to the IBC
[Jubin Jay is a 5th year BBA.LLB student at National Law University Odisha] The National Company Law Appellate Tribunal (NCLAT) on 4 July, 2019 passed an order in the Essar Steel insolvency case (Standard Chartered Bank v. Satish Kumar Gupta). Extending to more than a hundred pages, the appellate body heard appeals from various operational creditors, banks and the state after the committee of...
Call for Submissions: NLUJ Law Review
[Announcement on behalf of the NLUJ Law Review] About the Review The NLUJ Law Review is the flagship journal of National Law University, Jodhpur, established with the objective of promoting academic research and fostering debate on contemporary legal issues in India. It is a bi-annual, double-blind student reviewed and edited the journal, focusing on an inter-disciplinary approach towards legal...
CCI’s Evolution in Relation to the Smartphone Market
[Sumit Jain is at the Centre for Competition Law and Economics (CCLE)] Through its order dated 16 April 2019 in Umar Javed v. Google LLC, the Competition Commission of India initiated a probe against Google Inc. for its potential abuse of dominant position on the Android platform. The order remains curious from multiple standpoints. First, it was not made public until as late as 18 June 2019...
Will the RBI’s Revised Circular on Stressed Assets Sustain its Validity?
[Surya Rajkumar is a BA LLB student at Jindal Global Law School] The Reserve Bank of India (RBI) had on 7 June 2019 issued its revised circular on the resolution of stressed assets following the decision of the Supreme Court of India in Dharini Sugars and Chemicals Limited v. Union of India, (2019) 5 SCC 480, in which it quashed the RBI’s previous circular dated 12 February 2018 as ultra vires...
Insolvency Proceedings for Conglomerate: Questions and Way Forward
[Piyush Rathi and Saksham Agrawal are 4th Year B.A. L.L.B students at NALSAR University of Law] A majority of large scale businesses today grow around a parent company that branches out into a group of companies, each of which performs a specific function. Such a structure in the form of a conglomerate provides for administrative convenience to the managers of the companies along with a range of...
Status of Arbitration Proceeding and Award during Moratorium
[Jannhvi Bhasin is a commercial & corporate advocate specializing in insolvency law at Kesar Dass B. & Associates and Akshay Sharma is a final year B.A.LLB (Hons.) student at National University of Study and Research in Law, Ranchi] The Insolvency and Bankruptcy Code, 2016 (IBC), which is a complete code in itself and provides for the initiation of a corporate insolvency resolution...
Shareholding Patterns and Director’s Duty of Loyalty: Comparative Analysis of India and the US
[Ishani Mookherjee is a 3rd year B.A. LLB (Hons.) student at Jindal Global Law School] The Delaware Supreme Court, in Cede v. Technicolor Inc., examined the applicability of the business judgment rule in the United States (US). For a business decision to be protected by this rule, two conditions have to be satisfied – the duty of loyalty and the duty of reasonable care. This creates a...
Recent Comments