[This guest post is contributed by Ananya Banerjee, who is a Fifth year B.A.LLB(H) Student, Department of Law, University of Calcutta.] With India’s Startup India Action Plan in force, it is expected that in the coming years a large number of entrepreneurs would incorporate their entities to enter a startup friendly Indian market. Any startup would need its very own constitutional...
Companies Law Committee Report
In June 2015, the Government constituted the Companies Law Committee (CLC) to make recommendations arising from the implementation of the Companies Act, 2013. Yesterday, the CLC issued its report containing detailed recommendations for reforms relating to the Companies Act as well as several rules issued under the Act. A quick review of the report indicates that it has extensively addressed...
Board of Directors’ Reliance on Legal Advisers
The question of whether, and to what extent, the board of directors of a company can rely upon the advise of the legal advisers of the company came up for consideration before a division bench of the Rajasthan High Court in Rajasthan Urban Co-operative Bank Ltd. v. Ajay Kumar Katewa (hat-tip: LiveLaw, once again). In this case, certain employees of a co-operative bank were compulsorily retired...
MCA Establishes Central Registration Centre for Reservation of Names
[The following guest post is contributed by Nikita Snehil of Vinod Kothari & Co.] By way of a Notification dated 22nd January 2016 and in order to encourage incorporation of companies, the MCA has established a Central Registration Centre (CRC) having territorial jurisdiction all over India for discharging or carrying out the function of processing and disposal of applications for...
Exit Route For Companies Who Have Made Deemed Public Issues
[The following guest post is contributed by Amitabh Robin Singh, who is an Associate at DSK Legal] The Securities and Exchange Board of India (“SEBI”) has recently issued a circular (“Circular”) which has allowed companies which have made deemed public offers (allotment of securities to more than 49 persons under the Companies Act, 1956) to escape penal action if the securities have not been...
What is a Foreign Company Under the Companies Act?
[This guest post is contributed by Ananya Banerjee, who is a Fifth year B.A.LLB(H) Student, Department of Law, University of Calcutta. The post relates to an interpretation of certain provisions of the Companies Act, 2013, and represents the view of the author, which have been backed up by arguments and reasoning. The possibility of alternative views and interpretation cannot be ruled out] This...
Supreme Court on Piercing the Corporate Veil in Public Interest
Background The separate legal personality of a company is a feature that has made that business form the most popular by a mile. However, the separate legal personality is not sacrosanct and is subject to limitations, as courts use the legal tool of piercing the corporate veil to disregard the separation between the company as a legal entity on the one hand and its shareholders and directors on...
Update: Action Plan on Start-up India
[The following post is contributed by Bhushan Shah and Neha Laxman from Mansukhlal Hiralal & Company] At the Global Workshop for Start-ups in Delhi, the Government very recently announced an Action Plan to promote and provide a conducive environment for Start-ups. The primary objective of the Action Plan is to (i) ease the process for young Indians to begin, sustain and develop home...
Fiduciary Capacity of Regulators and the Right to Information
[The following guest post is contributed by Apoorv Chaturvedi, who is a 4th year BA LLB student at the Jindal Global Law School] The regulatory regime in India is a complex system with multiple regulators set up for promoting “healthy and orderly development”[1] and to “prevent malpractices”[2] of companies, banks, stock markets etc. This healthy development is very closely related to the...
SEBI: Report on Alternative Investment Funds
Yesterday, the Alternative Investment Policy Advisory Committee appointed by SEBI under the chairmanship of Mr. Narayana Murtyh issued its first report. The Committee has suggested a number of reforms on different fronts, including creating a favourable tax environment for investors, unlocking domestic sources of venture capital and private equity, enabling and encouraging onshore fund management...
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