Tag: Company Law
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Companies (Amendment) Bill 2016: An Analysis
[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…
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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…
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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,…
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Understanding the Exit Rights Provided by Private Companies
[The following guest post is contributed by Ananya Banerjee, a 5th Year Student of University of Calcutta, Department of Law] Investing in companies (especially in startups) involves a huge risk. For this reason, financial investors look for exit rights which allow them to exit the company with a high return on the investment amount. While the aim…
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Case-Study Evidence of Shareholder Activism
We have previously highlighted the rise of shareholder activism in India (here and here). Activism has been aided by regulatory reforms that have enlarged shareholder participation. In addition, market changes have resulted in previously passive institutional investors becoming more active in recent times. They have further been supported by the emergence of a growing and…
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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 yogesh.chande@amsshardul.com] 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…
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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…
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Penny Wise : A Crowdfunding Critique
[The following guest post is contributed by Anantha Krishnan Iyer, a graduate of National Law University Lucknow (batch of 2008-2013) currently working with a leading law firm in Mumbai] Introduction Pooling as a concept that has existed for a while now, as it is considered a useful solution to generate certain efficiencies. The advent of…
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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…
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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…
