Tag: Corporate Veil
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Doctrine of ‘Reverse’ Piercing and the Jurisprudence of Indian Courts
[Debarshi Chakraborty is a 3rd year B.A., LL.B. student at National Law University Odisha.] The doctrine of ‘reverse’ piercing, although relatively new, is a controversial area of corporate law. This doctrine could be problematic given the situations where a body corporate has multiple shareholders. Conversely, there have been times even in relation to companies with one…
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Compulsory Amalgamation: the Bombay High Court on the FTIL-NSEL case
[Posted by Mihir Naniwadekar] In 63 Moons Technologies Ltd. v. Union of India (and connected petitions), the Bombay High Court considered important questions of law going to the heart of Indian corporate law. The case involved a challenge to an order of the Central Government under s. 396 of the Companies Act, 1956. Purporting to…
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SAT Affirms SEBI’s Power to Lift the Corporate Veil
[Posted by Umakanth Varottil] In an order passed yesterday in Sahara Asset Management Company P. Ltd v. Securities and Exchange Board of India, the Securities Appellate Tribunal (“SAT”) considered an appeal from an order of the Securities and Exchange Board of India (“SEBI”) in which SEBI had found that Sahara India Financial Corporation Ltd. (“Sahara…
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Applicability of the Doctrine of Corporate Veil to Societies
[Posted by Umakanth Varottil] [Post by Munmi Phukon and Sagar Batra of Vinod Kothari & Company] Meaning of Corporation or Body Corporate Pursuant to Section 2(11) of the Companies Act, 2013 (CA, 2013), “body corporate” or “corporation” includes a company incorporated outside India, but does not include— (i) a co-operative society registered under any…
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Arbitration Agreement and Piercing the Corporate Veil
[Posted by Umakanth Varottil] When a company is a party to an agreement that is subject to arbitration, can the arbitration award be passed against a significant shareholder of such company? That would generally be possible only if either the shareholder has expressly or impliedly consented to be bound by the arbitration agreement, or if…
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Supreme Court on Piercing the Corporate Veil in Public Interest
[Posted by Umakanth Varottil] Background The separate legal personality of a company is a feature that has made that business form the most popular by a mile. However, the separate legal personality is not sacrosanct and is subject to limitations, as courts use the legal tool of piercing the corporate veil to disregard the separation…