[The following post is contributed by Vinod Kothari of Vinod Kothari & Co.] The Government placed a Bill to amend the Companies Act, 2013 (the “2013 Act”), passed less than 3 years ago, proposing nearly 100 amendments, purported to be for the ease of doing business. Most of the amendments proposed in the Bill are to implement the recommendations of the Company Law Committee, which was...
Companies (Amendment) Bill, 2016 Introduced in Parliament
Last month, the Companies Law Committee (CLC) had submitted its report recommending certain reforms to the Companies Act, 2013. Suggestions were invited from the public through a brief consultation process. Based on these recommendations, the Government has now introduced the Companies (Amendment) Bill, 2016 in the Lok Sabha. The Statement of Objects and Reasons set out the rationale for the...
Delhi High Court on Directors’ Duties and Derivative Actions
It is not very often that we witness cases in India relating to intrinsic company law issues such as breaches of directors’ duties and shareholder remedies through derivative actions. However, questions of directors’ duties have been brought to the fore following the Companies Act, 2013 as they have been codified in the legislation. Derivative action, however, still remains within the realm of...
Exit Offer to Dissenting Shareholders
[The following guest post is contributed by Yogesh Chande, who is a Partner at Shardul Amarchand Mangaldas, Advocates & Solicitors. Views of the author are personal. Yogesh can be reached at [email protected]] Subsequent to my guest post dated 30 March 2014 in connection with section 13(8) and section 27(2) of the Companies Act, 2013, SEBI issued a discussion paper on 1 December...
The Companies Law Committee on Section 117 and Appointment and Remuneration of Managerial Personnel
[The following guest post is contributed by Amitabh Robin Singh, who is an Associate at DSK Legal] In an earlier post, this author had discussed the proposed changes made by the Companies Law Committee (“Committee”) to Chapter 3 (Prospectus and Allotment of Securities) of the Companies Act, 2013 (“2013 Act”). In this post, a particular observation of the Committee, which stretches between...
Summary: Recommendations of the Companies Law Committee
[The following post is contributed by Bhushan Shah and Labdhi Shah from Mansukhlal Hiralal & Company] The Companies Act, 2013 (2013 Act) was enacted with a view to bring Indian company law in tune with global standards. However, as is the case with every new legislation, the enactment of this Act also led to ambiguity and confusion within the industry. The Government continued to...
Adoption of Indian Accounting Standards (Ind AS) by Banks, Insurance Companies and NBFCs – Effects of Transition and Potential Hurdles
[The following guest post is contributed by Arka Saha, who is a 4th Year B.A.LL.B. (Hons) & Executive Student in CS (ICSI) at National Law University Odisha (NLU-O)] To bring about systemic convergence of financial reporting standards in vogue in the case of Indian banking companies, Insurance companies and Non-banking Financial Companies with those recognised and accepted globally, the...
Is it time to abolish the memorandum of association?
[The following guest post is contributed by Suprotik Das, a 4th year law student at the Jindal Global Law School, Sonepat, Haryana.] With the advent of the recent Start-up India Action Plan, the focus for start-ups seems to be on simplification of convoluted legal procedures, efficiency and speed of incorporation. In this regard, the Government has proposed that incorporation and...
Recommendations of the Companies Law Committee: A Proposed Overhaul of the Private Placement Regime
[The following guest post is contributed by Amitabh Robin Singh, who is an Associate at DSK Legal] The recently released Companies Law Committee report (“Report”) has recommended a plethora of amendments to the current company law regime. However, some of the most sweeping changes have been proposed in relation to private placement of securities. In this post, some of the key changes...
Drafting the Articles of a Private Company
[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...
Recent Comments