[The following is a guest post from Vinod Kothari of Vinod Kothari & Co. He can be contacted at [email protected]] If the Ministry of Corporate Affairs’ (MCA) recent rules, that came a bit too many over a day too less, to replace the nearly 60-year old Companies Act 1956 by the Companies Act, 2013, ultimately survive challenge on constitutional grounds, then we may permanently...
Guest Post: Regulations by SEBI under the Companies Act, 2013 for Promoter Acquisitions
[The following post is contributed by Yogesh Chande, who is a Consultant with Economic Laws Practice, Advocates & Solicitors. Views of the author are personal] In terms of section 13(8) of the Companies Act, 2013 (Act), a company, which has raised money from public through prospectus and has any unutilised amount out of the money so raised, is not permitted to change its objects for which it...
Further Provisions of Companies Act, 2013 Notified
The Ministry of Corporate Affairs today issued a notification that brings into effect several provisions of the Companies Act, 2013 with effect from April 1, 2014. These include several substantive provisions that would affect the manner in which companies are managed. A quick review of the notification suggests that the key provisions yet to be brought into force involve the National Company Law...
Guest Post: Directorship in a Company: Cap of Thorns
[The following post is contributed by Nidhi Bothra and Abhirup Ghosh at Vinod Kothari & Co. They can be contacted at [email protected] and [email protected] respectively] The Companies Act, 2013 (CA, 2013) brings about a sea change in the way the charter guiding corporate India will look like. The existing Act of 1956 has been the guiding force for nearly 60 years now but the...
Does section 185 apply to holding-subsidiary transactions?
The following post is contributed by Vinod Kothari of Vinod Kothari & Co. He may be contacted at [email protected] This follows a previous post on this topic by Jayant Thakur] Does section 185 apply to transactions of loans, guarantees or provision of security, in holding-subsidiary financial transactions? This question is evidently one of the most significant questions facing the...
An Instance of Shareholder Activism
A lot has already been said about shareholder activism in India, and how the concept has acquired a strong footing more recently. Shareholder activism may take on different forms. Shareholders may simply dump the stock of companies they believe are not being governed in the desired manner to protect investors (a.k.a. the “Wall Street walk”). They may engage with managements to influence decision...
CSR Provisions Soon to be Effective
The provisions of the Companies Act, 2013 and the rules thereon pertaining to corporate social responsibility (CSR) have been notified yesterday. They will take effect from April 1, 2014. A copy of the rules as notified is available here. As for the specific CSR activities, Schedule VII of the Companies Act containing the list of permitted activities has been amended. While we will have occasion...
Ten Monsters in the Companies Act, 2013 – Part 3
[The following post, which is the third in a three-part series, is contributed by Vinod Kothari of Vinod Kothari & Co. The author can be contacted at [email protected] This follows Parts 1 and 2] 7. Casual approach to special majority rule Let us realise that Companies Act was drafted decades ago in England by luminaries. These people, who...
Ten Monsters in the Companies Act, 2013 – Part 2
[The following post, which is the second in a three-part series, is contributed by Vinod Kothari of Vinod Kothari & Co. The author can be contacted at [email protected] The first part in the series is available here] 3. Intruding into privacy of private, unlisted companies While we have made the point about above about sweeping regulation...
Ten Monsters in the Companies Act, 2013 – Part 1
[The following post, which is the first in a three-part series, is contributed by Vinod Kothari of Vinod Kothari & Co. The author can be contacted at [email protected]] The significance of the corporate sector to the economy does not need any emphasis, and the Companies Act is surely the core legislation that affects the corporate sector. It is not that the Companies Act was hastily...
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