Tag: Companies Act
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MCA Clarifies “Appointed Date” in Schemes of Arrangement
[Posted by Umakanth Varottil] In schemes of arrangement, whether by way of a merger, demerger or other form of corporate restructuring, the timing of when the transaction takes effect becomes important. It is from such a date that the financial statements of the companies involved will reflect the effect of the transaction. Given that the…
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Financial Statements of Foreign Subsidiaries of Indian Listed Companies
[Posted by Umakanth Varottil] Corporate group structures are common among Indian listed companies which hold shares in subsidiaries both in India and other countries around the world. Due to differences in financial reporting requirements in all jurisdictions where the corporate group is present, the Companies Act as well as regulations issued by the Securities and…
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Concept of Retiring Auditors under the Companies Act, 2013
[Munmi Phukon is a Principal Manager at Vinod Kothari & Company, and can be reached at munmi@vinodkothari.com] Five years since the implementation of the Companies Act, 2013 (CA 2013), a common agenda pertaining to appointment/ reappointment of statutory auditors is going to be placed before the shareholders in the ensuing annual general meetings of most…
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The Enforceability of Investor Rights in Indian Private Equity
[Arjya B. Majumdar is an Associate Professor at Jindal Global Law School] Globally, private equity (PE) and venture capital funds are among the primary factors supporting entrepreneurship and furthering growth in companies. These investments are ordinarily made in exchange against some form of minority shareholding in the investee company, such as equity shares or convertible…
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Electoral Bond Scheme, 2018: A Company Law Perspective
[Abhinav Sankaranarayanan and Saurav Rajurkar are IV year students at the West Bengal National University of Juridical Sciences, Kolkata] Background The Electoral Bond Scheme, 2018 made headlines recently after the Supreme Court of India finally began hearing the matter and passed an interim order requiring political parties to submit the details of funds procured through electoral…
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Supreme Court on the Relationship between Insolvency and Winding-up Proceedings
[Akhil Kumar is a Fourth Year BA LLB (Hons.) student and Ayushi Singh a Third Year BA LLB (Hons.) student at NUALS, Kochi] The Insolvency and Bankruptcy Code, 2016 has amended several provisions of the Companies Act, 2013 through the eleventh schedule of the Code. This has, on a few occasions, led to several uncertainties…
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SEBI Consults on Shares with Differential Voting Rights
[Posted by Umakanth Varottil] Dual class share (DCS) structures are becoming more popular around the world. While they have been existent in several companies in the United States (US) for some decades now, they were accompanied sometimes by a sense of unease among investors and regulators due to the disparity they create between economic rights…
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Do the Companies (Significant Beneficial Owners) Amendment Rules, 2019 Narrow the Scope of these Rules?
[Aditi Tomar is a 4th Year B.A.LLB (Hons.) Student at NALSAR University of Law, Hyderabad] The Companies (Significant Beneficial Owners) Rules, 2018 (“Rules”), which were notified on 14 June 2018, aimed to trace the ultimate individual or natural person who holds beneficial interest, i.e., exercises rights and entitlements in the company, by looking through the…
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Amendment to the Companies (Significant Beneficial Owners) Rules, 2018: An Analysis
[Niharika Sharma is a IV Year, B.A. LL.B. (Hons.) student at the National Law School of India University, Bangalore] In June 2018, the Ministry of Corporate Affairs (‘MCA’) issued the Companies (Significant Beneficial Owners) Rules, 2018 (‘SBO Rules’) and notified section 90 of the Companies Act, 2013 (‘2013 Act’). This was to curb the illicit activities…