TagCompanies Act

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 complex layers of the corporate...

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 (such as money laundering) being carried...

A Question of Interpretation in Identifying Significant Beneficial Owners

[Aditi Tomar is a 4th Year B.A.LLB (Hons.) Student at NALSAR University of Law, Hyderabad] The Ministry of Corporate Affairs notified the Companies (Significant Beneficial Owners) Rules, 2018 (“Rules”) in the official gazette on 14 June 2018. The power to formulate these Rules is derived from section 90 of the Companies Act, 2013 (“Act”). These Rules cast an obligation on both public and private...

The (Ambiguous) Position of Chairman Emeritus in Corporate Governance

[Priya Garg is a 5th year student at West Bengal National University of Juridical Sciences (WBNUJS), Kolkata] When Ratan Tata, the then Chairman Emeritus of the Tata Group of companies, allegedly exercised his influence over the Group’s directors to dethrone its then Chairman, Cyrus Mistry, because of the former’s dissatisfaction with the latter’s functioning,[1] a new corporate governance issue...

Disclosure Regarding Significant Beneficial Owners: Another Stride from SEBI

[Ambika Mehrotra is a Manager at Vinod Kothari & Company in its Corporate Law Services Division] In the interest of investors in the securities market and with a view towards better corporate governance, the Securities and Exchange Board of India (“SEBI”) has taken steps to widen the scope of compliances for listed entities. Accordingly, to bring in more transparency for investors, SEBI has...

Increasing the Ambit of Rights Available to Voting by Proxy

[Vishal Hablani and Anirudh Goyal are 3rd & 4th Year B.A.L.L.B. (Hons.) students respectively at the West Bengal National University of Juridical Sciences, Kolkata] Under the proxy system of voting, a shareholder delegates his rights to attend and vote at a meeting to another person as his representative. This representative is known as the proxy. The system of proxy voting has statutory...

Where We Stand On Shell Companies

[Tishya Saran and Aayush Grover are both 5th year students of Government Law College, Mumbai] Background Continuing its crackdown on shell companies, the Government has promulgated the Companies (Amendment) Ordinance, 2018 (the “Ordinance”), with effect from 2 November 2018. The Ordinance, amongst other things, seeks to enhance accountability for non-filing of charges, maintenance of documents...

Filing of Form PAS-4 in Private Placements

[Deepansh Guwalani is a 5th year student at ILS Law College, Pune] Introduction Private placement in India is regulated by section 42 of the Companies Act, 2013 (the “Act”) and rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 (the “Allotment Rules”). The said laws have undergone a recent change by way of the Companies (Amendment) Act, 2017 and the Companies...

Activation of Companies Struck Off under Companies Act

[Anirudh Singh is a 4thyear B.A LL.B (Hons) student of NALSAR University, Hyderabad] When a company is registered on incorporation, it is necessary that it should have a process of deregistration other than by way of winding up. This is so if, after registration, the company does not carry on business. Such process, known as “striking off”, is specified in section 248 of Companies Act...

Resolving Ambiguities in CSR Provisions

[Bunny Sehgal is an Associate at Vinod Kothari & Co. and can be reached at [email protected]] With the enactment of the Companies Act, 2013 (‘Act’), India has become one of the leading countries to mandate spending on corporate social responsibility (‘CSR’) activities through a statutory provision. Since then CSR has become a topic of interest for corporates. Further, with the passage...

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