TagCorporate Criminal Liability

Impact Analysis of Committee Recommendations on Offences under the Companies Act

[Gaurav Pingle is a practising Company Secretary in Pune and can be reached at [email protected]] The Government of India had constituted a Committee to review the existing framework dealing with offences under the Companies Act, 2013 (‘Act’) and related matters. The Committee was also required to make recommendations to promote better corporate compliance. The Committee submitted its final...

Fugitive Economic Offenders Bill: An Overview

[Meera Sreekumar is a corporate lawyer and a graduate of the National Law School of India University, Bangalore] Introduction In the backdrop of the Nirav Modi scam, the Union Cabinet has approved the Fugitive Economic Offenders Bill, 2018 (the “Bill”). The Government of India initially introduced the Bill in the budget session of 2017-2018, and re-introduced it in the Lok Sabha on March 12, 2018...

Fugitive Economic Offenders Bill: A Viable Project or a Doomed Battle?

[Malcolm Katrak is a Law Clerk to Justice (Retd.) S. N. Variava, Former Judge, Supreme Court of India] Recently, the Law Ministry affirmed the draft ‘Fugitive Economic Offenders Bill, 2017’, which gives powers to the Government to confiscate property of economic offenders and defaulters. This Bill flows from the Finance Minister’s budget speech promising legislative changes to confiscate the...

Supreme Court on Prosecuting a Company for Cheque Dishonour

The Supreme Court in N. Harihara Krishnan v. J. Thomas ruled yesterday on certain procedural aspects relating to the offence under section 138 of the Negotiable Instruments Act, 1881 (“NI Act”) of dishonour of a cheque issued by a company. It held that any failure to include the company as an accused in the complaint at the outset (i.e. within the limitation period) would be fatal to the...

Supreme Court on Vicarious Liability of Corporate Officers

[Guest post by Rahul Bajaj, a final year law student at the University of Nagpur and a SpicyIP fellow] The issue of corporate criminal liability has always been a vexed one, raising as it does profound jurisprudential questions that go to the heart of the separate legal status enjoyed by companies. As Professor Varottil noted in his analysis of the Sunil Bharti Mittal judgment on this Blog that...

Supreme Court on Corporate Officers’ Criminal Liability

The Supreme Court of India on Friday issued its judgment in Sunil Bharti Mittal v. Central Bureau of Investigation on whether senior corporate officers are to be held criminally liable for acts of their companies. After an analysis of the law on the issue and its application to the facts of the case, the Court answered the question in the negative. Conceptual Background Corporate criminal...

Companies Act, 2013: Directors’ Duties and Liabilities

The NSE Centre for Excellence in Corporate Governance (CECG) has issued its most recent quarterly briefing titled “Directors’ Duties and Liabilities in the New Era”. The executive summary is as follows: – Since directors and the board play a pivotal role in corporate governance, the law foists duties and liabilities on them; – The Companies Act, 2013 has brought about a paradigm shift...

The Criminalization of Commercial Disputes

News reports indicate that the Supreme Court of India has ordered the chairman of Samsung Electronics to appear before a Ghaziabad court in relation to charges filed by a party in a contractual dispute. This is pursuant to an earlier judgment of the Supreme Court rendered on February 1, 2012 that delves into the various substantive issues involved in the dispute, including the jurisdiction of the...

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...

Court of Appeal: Clarification of ‘Meridian’ attribution

 The theory of attribution in common law turns significantly on the application of the two main cases: Tesco Supermarkets v. Nattrass [1972] AC 153 (which provides for a strict reading of who the ‘directing mind and will’ of a company is), and Meridian Global Funds v. Securities Commission [1995] 2 AC 500 (which, in certain instances, allows for a more flexible understanding). In the...

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