Tag: Company Law
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‘Sweat Equity’ vs. ‘Sweet Equity’ – a Legal Perspective
(In the following post, Rohan Bagai analyzes the regulations relating to ‘sweat equity’ under Indian company law in the light of recent events surrounding the Indian Premier League. Rohan is a corporate lawyer at one of the leading law firms in India. He holds a Master of Laws (LL.M.) degree from New York University School…
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Further Comments on the NCLT judgment
In an earlier post, I had noted that a Constitution Bench of the Supreme Court has upheld the establishment of the National Company Law Tribunal and the National Company Law Appellate Tribunal, in an appeal filed by the Union of India against a judgment of the Madras High Court. The judgment of the Constitution Bench (Union of…
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Nomination vs. Succession on Shares
In his column in the Business Standard, guest contributor Somasekhar Sundaresan analyzes a recent judgment of the Bombay High Court that establishes the superiority of the nomination process over succession (whether testamentary or otherwise) in respect of shares of a company. He observes: The law on nomination of shares held in companies has taken a…
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Supreme Court upholds NCLT
The Business Standard reports that the Supreme Court of India has upheld the validity of the National Company Law Tribunal. A Constitution Bench of the Court delivered the judgment more than a year after hearing arguments on an appeal filed against a decision of the Madras High Court in R. Gandhi v. Union of India. In an earlier post, I had stated: “The principal challenge…
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The Supreme Court’s Judgment in the Reliance Dispute – Part II
A previous post outlined the issues that arose in the Reliance judgment and summarised the Court’s conclusions. In this post, I discuss two of these in more detail – the doctrine of identification, and the binding nature of an MoU under the Companies Act, 1956. As to the first issue, it was argued by RNRL…
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The Supreme Court’s Judgment in the Reliance Dispute – Part I
The Supreme Court’s judgment today in Reliance Natural Resources Ltd. [“RNRL”] v. Reliance Industries Ltd. [“RIL”] turns on several important propositions of corporate and contract law. It has been widely reported that RIL prevailed by a majority of 2:1. This is incorrect, for Justice Sudershan Reddy’s separate opinion concurred with the majority on all but…
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Characterising a Joint Venture
A joint venture, perhaps one of the most widely used vehicles of commerce, is principally of two types – an incorporated joint venture [“IJV”] and an unincorporated joint venture [“UJV”]. The shares of the IJV are held by the members of the joint venture, in proportions that typically reflect their respective contributions to the enterprise.…
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NLSIR Corporate Law and Corporate Governance Symposium: April 10 and 11, 2010
The NLSIR Symposium, scheduled for 10 and 11 April at the NLS campus in Bangalore, will feature several important topics that we have discussed on the blog, including corporate governance, independent directors, tax planning, tax avoidance and adjudication of company disputes. The schedule for the symposium is indicated below. Readers interested in attending may contact…
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A Rather Elusive Form of the Statutory Corporation
Any discussion of the difference between a company and a statutory corporation seems, at first sight, unnecessary. It is, after all, settled law that a statutory corporation is an entity created by a statute, while a company is an entity that is governed by the provisions of a statute. This distinction, however, has become sharply…
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Event Announcement: 3rd NLSIR Symposium on Corporate Governance
The National Law School of India Review (NLSIR), the flagship journal of the National Law School of India University, Bangalore, will be hosting the 3rd Annual NLSIR Symposium, ‘Indian Corporate Law and Corporate Governance: At the Crossroads’, in Bangalore, on 10th and 11th April, 2010. Extracts from the concept note for the Symposium may be…
