Tag: Companies Act
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Further Provisions of Companies Act, 2013 Notified
[Posted by Umakanth Varottil] 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. Normal 0 false false false EN-US JA X-NONE /* Style…
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Guest Post: Directorship in a Company: Cap of Thorns
[Posted by Umakanth Varottil] [The following post is contributed by Nidhi Bothra and Abhirup Ghosh at Vinod Kothari & Co. They can be contacted at nidhi@vinodkothari.com and abhirup@vinodkothari.com 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…
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Does section 185 apply to holding-subsidiary transactions?
[Posted by Umakanth Varottil] The following post is contributed by Vinod Kothari of Vinod Kothari & Co. He may be contacted at vinod@vinodkothari.com 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…
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An Instance of Shareholder Activism
[Posted by Umakanth Varottil] 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.…
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Ten Monsters in the Companies Act, 2013 – Part 3
[Posted by Umakanth Varottil] [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 vinod@vinodkothari.com This follows Parts 1 and 2] 7. Casual approach to special majority rule Let us realise that Companies Act was drafted decades ago…
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Ten Monsters in the Companies Act, 2013 – Part 2
[Posted by Umakanth Varottil] [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 vinod@vinodkothari.com The first part in the series is available here] 3. Intruding into privacy of private, unlisted companies While we have made the point…
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Ten Monsters in the Companies Act, 2013 – Part 1
[Posted by Umakanth Varottil] [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 vinod@vinodkothari.com] The significance of the corporate sector to the economy does not need any emphasis, and the Companies Act is surely the core legislation…
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Scheme of Arrangement: Notice to Central Government
[Posted by Umakanth Varottil] Since a scheme of arrangement, once sanctioned, becomes binding on all shareholders and creditors a company and also has wider impact, company law prescribes a stringent process for the same. One such is the requirement that the court must issue notice to the Central Government under section 394-A of the Companies…
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BNP Paribas v UB Holdings: The Karnataka High Court on s 536(2)
[Posted by V. Niranjan] In its recent judgment in BNP Paribas v UB Holdings, a Division Bench of the Karnataka High Court has considered an important question of insolvency law. The case has been widely reported in the press, of course, for it set aside a sale of shares to Diageo and made some observations…