Tag: Companies Act
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Dividend Waiver by Shareholders
[The following guest post is contributed by Pavit Singh Kochar, a legal associate (corporate) with KNM & Partners Law Offices, New Delhi] The term “dividend” has been defined under section 2(35) of the Companies Act, 2013 (“Act”), and it includes interim dividend. Dividend is a return on the investment of shareholders in companies payable for…
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Changes in the Fraud Reporting Mechanism Under the Companies (Amendment) Act, 2015
[The following guest post is contributed by Suprotik Das, a 4th year law student at the Jindal Global Law School, Sonepat, Haryana.] The Companies (Amendment) Act, 2015 is a harbinger of positive trends in the ease of doing business for Indian companies. This post is specifically with regard to Section 143 of the Companies Act, 2013 concerning…
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Independent Directors in Private Debt-Listed Companies
[The following guest post is contributed by Niddhi Parmar of Vinod Kothari & Co.] Earlier under Companies Act, 1956 (section 2(23A)) the term “listed public companies” was in a manner that clearly excluded private companies. Consequently, listed private companies were exempt from certain provisions that were exclusively applicable to listed public companies. However, the Companies…
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Status of Subsidiary Private Companies in India – Cross Border Holdings
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Secretarial Standards – 1: Circulation of Signed Board Minutes
[The following guest post is contributed by Nivedita Shankar, Partner, Corporate Law Division at Vinod Kothari & Co.] Paragraph 7.6.4 of Secretarial Standards – 1 (“SS-1”) states that signed board minutes have to be circulated to all directors within 15 days of their signing. This is a novel requirement and is an addition to the…
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Gender Diversity on Corporate Boards in India
The NSE Centre for Excellence in Corporate Governance (CECG) has issued its most recent quarterly briefing titled “Gender Diversity on Boards”, which has been authored by N. Balasubramanian and Nirmal Mohanty. The executive summary is as follows: • Having women on corporate boards is a diversity measure justified on the basis of both social equity…
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Bombay High Court on Share Transfer Restrictions
The question of whether transfer restrictions imposed by agreement on shares of a listed company are enforceable has been a vexed one. Numerous decisions of the Supreme Court as well as High Courts had expressed somewhat different views on the nuances of the issue. However, some stability was brought about in 2010 by a decision…
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Exemptions to Government Companies: A Corporate Governance Perspective
[The following post is contributed by Shriya Jain, Fourth year student & Param Pandya, Fifth year student of Gujarat National Law University, Gandhinagar, Gujarat. The authors can be contacted at shriyaj11@gnlu.ac.in & paramp10@gnlu.ac.in respectively]. A government company is defined under section 2(45) of the Companies Act, 2013 (‘2013 Act‘) as a company in which not less…
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MCA’s Exemption Notification for Government Companies
[The following guest post is contributed by Vinita Nair of Vinod Kothari & Co. The author may be contacted at vinita@vinodkothari.com.] By way of a notification dated June 5, 2015 exempted Government companies, private companies, section 8 companies and nidhi companies from complying with certain provisions of the Companies Act, 2013 (“Act, 2013” or “Act”…
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MCA’s Exemption Notification for Section 8 Companies
[The following guest post is contributed by Nitu Poddar of Vinod Kothari & Co. The author may be contacted at nitu@vinodkothari.com. By way of a notification dated June 5, 2015, the Ministry of Corporate Affairs (“MCA”) exempted Section 8 companies,[1] government companies private companies and nidhi companies from complying with certain provisions of the Companies…
