Category: Uncategorized
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Compensation Arrangements between Private Equity and Company Management: Corporate Governance Issues
In its board meeting held on 23 October 2016, the Securities and Exchange Board of India (“SEBI”) highlighted the issue of compensation arrangements agreed to by private equity (“PE”) firms with the promoters, directors and key managerial personnel (collectively, the “management”) of investee companies that are listed on the stock exchange, and certain corporate governance…
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Supreme Court on Dishonour of Post-Dated Cheques Issued as Security
[The following post is contributed by Sneha Bhawnani, who is an Assistant Legal Advisor at Vinod Kothari & Co. She can be contacted at sneha@vinodkothari.com.] In the present era of commercial dealings, the issuance of post-dated cheques has become a common phenomenon and therefore the significance of such post-dated cheques cannot be under-emphasized. In this…
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SAT on Merchant Bankers’ Obligation in a Public Offering
Background: History Repeats Itself The Securities and Exchange Board of India (“SEBI”) has in recent year initiated actions pertaining to the alleged lack of accurate disclosures in prospectuses issued by companies in public offerings of securities. One high profile case involved the initial public offering (“IPO”) of DLF Limited wherein SEBI issued an order restraining…
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Non-compete Fee: A Bane for Minority Shareholders
[The following post is contributed by Soham Roy & Akhil Nene, who are 5th year students at the National Law University Odisha] A non-compete fee is paid to exiting promoters or founders of a company to ensure that they do not compete for a certain period of time with the company they are exiting. Recently,…
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Announcement: Essay Competition in Corporate Law
[The following announcement is posted on behalf of the Corporate Law Society, National Law University, Jodhpur] Corporate Law Society, National Law University, Jodhpur, is pleased to announce the 1st Pranita Mehta Memorial Essay Competition, 2016 in memory of the university’s exceptional student, Ms. Pranita Mehta. The Competition is open to all students pursuing under-graduate (three/five…
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The Inapplicability of Money Lending Laws to Regulated NBFCs
[The following guest post is contributed by Munmi Phukon, who is a Senior Manager in the Corporate Law Division at Vinod Kothari & Co.] Introduction In 2011, a landmark judgment of the Gujarat High Court in Radhe Estate Developers Vs. Versus Mehta Integrated Finance Co. Ltd. and Ors (the ‘Gujarat Ruling’) contested the very fact…
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Exempted inter-se transfer amounts to ‘sale’
[The following post is contributed by Supreme Waskar, who is a corporate lawyer in Mumbai] In an earlier post on February 18, 2012, Mr. Umakanth Varottil had discussed the informal guidance issued by the Securities and Exchange Board of India (SEBI) to Strides Arcolabs in connection with the company’s eligibility to issue securities to its promoters on…
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Takeover Regulations and the Banking Sector
Two separate but recent developments underscore the need to treat the banking sector differently when it comes to compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the “Takeover Regulations”). While the first relates to the applicability of the Takeover Regulations to capitalization of banks, the second relates to restructuring debts of…
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Call for Papers: Journal on Corporate Law & Governance
Normal 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”;} [The following announcement is posted on behalf of the Journal on Corporate Law & Governance] This is a call for papers for Volume 2…
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Arbitration in India: The Merits of Third Party Funding
[The following post is contributed by Gourav Mohanty, who is a lawyer in Mumbai] Introduction The effort at improving India’s arbitration sentiment by the creation of the Mumbai International Arbitration Centre (“MIAC”) has received applause, although many in the legal industry, for example Mr. Nishith Desai, do not think of it as a game changer.…
