The International Commission of Jurists (ICJ), a non-governmental organization headquartered in Geneva, has put out a detailed and well-researched report titled Access to Justice: Human Rights Abuses Involving Corporations, which covers the scenario in India. The abstract is as follows: The 1984 Bhopal gas disaster involving Union Carbide provoked a marked shift in perceptions concerning the...
Rating Agencies Back in the Spotlight
S&P has indeed made a bold move by downgrading United States’ sovereign rating. While there may by political opposition, quibbles with the arithmetic, and the like, there is a strong view that those amount to “shooting the messenger”. The downgrading by S&P assumes greater importance because it comes in the wake of determined efforts by governments to tighten their control over credit...
Recent Literature on Corporate Governance
Professor Donald Clarke has posted a paper titled ‘Nothing But Wind’? The Past and Future of Comparative Corporate Governance where he examines the trends in comparative corporate governance scholarship and analyzes the direction it is likely to take in the near future. The abstract is as follows: Corporate law scholarship has come a long way since Bayless Manning some four decades ago famously...
SEBI’s Concept Paper on Alternative Investment Funds
Currently, private pools of capital are not subject to detailed regulation. No mandatory registration of such investment vehicles is necessary. Registration of such vehicles as venture capital funds (VCFs) is more in the nature of a facility available to take advantage of various benefits available through such registration under SEBI VCF Regulations. While several private pools indeed register...
Simplified Procedures under Company Law
In a string of circulars issued over the last week or so, the Ministry of Corporate Affairs (MCA) has sought to streamline various procedures under the Companies Act so that they can be completed in an efficient and timely manner. These include: – Online incorporation of companies within 24 hours. This would be significant as very few countries can boast of instantaneous incorporation of...
The Use of “and/or” in Legal Documents
Many of us have been dissuaded at one time or the other from using the expression “and/or” in legal documentation. Despite inherent ambiguities, its use continues to be quite extensive. I came across this interesting piece containing detailed research on the topic, with the unequivocal conclusion: desist from using it.
Changes to Takeover Regulations
SEBI has approved most of the changes suggested by the Takeover Regulations Advisory Committee (TRAC) last year to the Takeover Regulations. The key changes are summarized in SEBI’s board note: a) Initial trigger threshold increased to 25 % from the existing 15 %. b) There shall be no separate provision for non-compete fees and all shareholders shall be given exit at the same price. c) In cases...
Maiden Order under Merger Control Regulations
Legally India has reported the issuance of the first order by the Competition Commission of India (CCI) under the Combination Regulations that came into force on June 1, 2011. CCI’s order considers the acquisition by Reliance Industries Limited and Reliance Industrial Infrastructure Limited (the Acquirers) of the 74% stake held by the Bharti Group in each of two joint venture insurance companies...
UNCTAD’s World Investment Report 2011
There have been several reports in the recent past about the continuing slide in FDI inflows into India. This has been confirmed by UNCTAD’s World Investment Report issued yesterday in which India’s ranking on FDI inflows has slipped to 14th in the world from 8th place last year. The report states the following reasons: FDI to South Asia declined to $32 billion, reflecting a 31 per cent slide in...
Gender Diversity on Corporate Boards
We have been examining the “mandatory vs. voluntary” debate with respect to corporate social responsibility (CSR). A similar debate has arisen with participation of women on corporate boards. Some countries (particularly in Europe) are adopting mandatory quota requirements. Others are adopting a voluntary approach, for example in the UK where executive search firms have published a voluntary code...
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