Category: Uncategorized
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Cairo Regional Centre for International Commercial Arbitration Rules, 2011:
[Posted by Umakanth Varottil] (The following post is contributed by Rohan Bagai) Notwithstanding the levitating political imbroglio in the Arab Republic of Egypt in the recent times, the Indian corporates (especially the fast moving consumer goods (FMCG) and the automakers) have enjoyed tempting tax breaks, favored trade treaties, and prompt approvals for operating businesses in…
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Nomination Committees of Corporate Boards
[Posted by Umakanth Varottil] The recent episode relating to the nomination of directors for appointment on the board of Hewlett-Packard Co. brings to the fore the role of the nomination committee. Institutional Shareholder Services (ISS), a shareholder advisory group, recommended a vote against certain nominees on the ground that HP’s nomination committee was heavily influenced…
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Pledge of Demat Shares: Implications Under Takeover Regulations
[Posted by Umakanth Varottil] A somewhat peculiar situation came up for consideration of the Securities Appellate Tribunal (SAT) in Liquid Holdings Private Limited v. SEBI, on which SAT passed its order on March 11, 2011. Background Liquid Holdings Private Limited (Liquid) was one of the promoters of Blue Coast Hotels Limited (the Target). Morepen Laboratories…
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Streamlined Procedure for Incorporation of Companies, etc.
[Posted by Umakanth Varottil] (The following post has been contributed by Rohan Bagai) The Ministry of Corporate Affairs, Government of India (“MCA”) has recently notified a General Circular No. 6/2011 dated March 8, 2011 (the “Circular”) simplifying the procedure for incorporation of companies and establishment of principal place of business in India by foreign companies.…
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Actions Against Independent Directors
[Posted by Umakanth Varottil] On March 11, 2011, SEBI passed an order in relation to Pyramid Saimara Theatre Limited (PSTL) restraining three of its independent directors (Mr. K.S. Kasiraman, Mr. K. Natarahjan and Mr. G. Ramakrishnan) from being independent directors or members of audit committees of any listed company for a period of two years…
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Court of Appeal on Concurrent Liability
[Posted by Shantanu Naravane] Earlier this year, the UK Court of Appeal was called on to consider an important question dealing with concurrent liability in contract and tort. The facts in Robinson v. Jones involved the defective construction of a house by a builder, which caused economic loss to the purchaser. However, the contractual remedy…
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Waiver of a Loan – Capital or Revenue?
[Posted by Shantanu Naravane] Recently, the Delhi High Court was called on to decide the interesting question of the tax treatment of loans and interest waived by financial institutions. In Logitronics v. CIT, the Court considered two cases which raised similar issues, and held that the treatment of the waived loan amount would depend on…
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A Level Playing Field and Public Interest
[Posted by V. Niranjan] One of the striking features of the Indian economy post-1991 is the conception it has of a level playing field as between Government and private enterprises. It should be noted that this cuts both ways, for while there are commercial advantages for certain Government entities, others are required as part of…
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Notification of Merger Review Provisions under Competition Law
[Posted by Umakanth Varottil] (The following post has been contributed by Rahul Singh, Assistant Professor, National Law School of India University, Bangalore (on leave) and Senior Associate, Trilegal) The Ministry of Corporate Affairs (MCA), Government of India has recently notified the provisions for regulation of combination (commonly known as “merger review provisions”) under the Competition…
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Smaller holding companies exempted from registration
[Posted by Jayant Thakur] While the August 2010 Guidelines of Core Investment Companies (“CICs”) have been discussed in detail earlier on this blog, the final notification of the Directions by the Reserve Bank of India on 5th January 2011 needs attention for a different reason. And this is to understand how Reserve Bank of India…