Tag: Company Law
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Differential Voting Rights: A Markets Perspective
[Posted by Umakanth Varottil] Economic Times carries the views and recommendations of various market participants about the feasibility and economics of issue of differential voting rights by Indian companies. One interviewee notes: “Differential voting rights can work every where in the world, and so also in India. These are ideally good instruments for passive investors,…
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Dispute Resolution under the New Company Law
[Posted by Umakanth Varottil] The establishment of the National Company Law Tribunal (NCLT) has been mired in controversy right from the start. Although the Companies Act was amended as early as 2002 to pave the way for the NCLT, the body is yet to be established (and the relevant provisions of the Amendment Act of…
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Regulating Companies: Whose Role is it Anyway?
[Posted by Umakanth Varottil] In the case of listed companies, when it comes to corporate governance, there is a classic dichotomy in regulation. On the one hand, it is the Ministry of Company Affairs that is largely responsible for the implementation of the Companies Act, 1956, while it is SEBI that is responsible for implementation…
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The “Par” Has Lost Its Value
[Posted by Umakanth Varottil] Indian company law includes several concepts that have become archaic. Efforts have been made to address this issue and to modernize company law – some the recent ones include a Concept Paper prepared by the Ministry of Company Affairs in 2004 and the JJ Irani Committee Report presented in 2005. However,…