[Dhruv Somayajula is a BA, LLB (Hons) student at NALSAR University of Law, Hyderabad] Introduction To minimize attrition of employees that are indispensable to its operation, companies offer financial incentives such as stock options. Stock appreciation rights (‘SARs’) are one such kind of stock options that create a right to the increment in value of the corporation’s stock over a...
SEBI: Rules on Profit Sharing Arrangements Apply to Unlisted Subsidiaries
The rules introduced earlier this year by the Securities and Exchange Board of India (“SEBI”) that impose restrictions on profit sharing arrangements in respect of listed companies have already provoked interpretational controversies. In an earlier informal guidance (relating to Accelya Kale Solutions Limited), SEBI clarified profit sharing arrangements that involved employees being provided...
Employee’s Right to Sue after Obtaining Full and Final Settlement from Employer
[Guest post by Ravi Pandey, IX Semester, National Law University, Lucknow] Full and final settlement is usually used by the employers to absolve themselves from all the previous dues and claims of their employees. It is usually actuated in the form of a settlement contract and effectively concludes the employer-employee relationship. Ideally such a settlement ought to serve its purpose and lead...
Board of Directors’ Reliance on Legal Advisers
The question of whether, and to what extent, the board of directors of a company can rely upon the advise of the legal advisers of the company came up for consideration before a division bench of the Rajasthan High Court in Rajasthan Urban Co-operative Bank Ltd. v. Ajay Kumar Katewa (hat-tip: LiveLaw, once again). In this case, certain employees of a co-operative bank were compulsorily retired...
Guide to Staff Loans under the Companies Act, 2013
[The following guest post is contributed by Munmi Phukon at Vinod Kothari & Co. The author can be contacted at [email protected]] One of the incogruities in the Companies Act, 2013 (Act, 2013) has been section 186 which subjected companies to certain threshold limits while giving loans to any person or other body corporate. However, the provisions were not explicit as to whether the term...
Amendments to the Provident Fund and Pension Fund Schemes Under the EPF Act
[The following guest post is contributed by Madhusudan Bose, who is a lawyer and company secretary by profession, at PRA Law Offices, New Delhi. Author’s views are personal] Pursuant to the proposals made by the Finance Minister in his Budget speech, the Ministry of Labour and Employment introduced a number of amendments to the Employees’ Provident Funds Scheme (“EPF Scheme”) and the Employees’...
Guest Post: Reduction of Provident Fund Contributions to Statutory Limits
[The following post is contributed by Madhusudan Bose, who is a lawyer and company secretary by profession, at PRA Law Offices, New Delhi] Introduction Recently, the Employees Provident Fund Organization (“EPFO”) issued a communication dated May 27, 2014, directing all Regional PF Commissioners not to force employers to contribute over and above the statutory wage ceiling in respect of their...
Sexual Harassment Act notified
The Ministry of Women and Child Development has notified December 9, 2013 as the effective date of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“Sexual Harassment Act”). The ministry has also notified the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 which provide clarity in respect some of the...
IICA’s Legal Compliance Manual
I just came across a Legal Compliance Manual put together by the Indian Institute of Corporate Affairs (IICA). It contains a list of compliances required to be carried out on the part of businesses that arise under various central and state legislation. Areas addressed include corporate law, environmental law, labour law, tax law and other general laws. It is indeed a useful tool for...
Parent’s Duty to Employees of its Subsidiary: Chandler v. Cape affirmed
In an earlier post, we had discussed the judgment of the England & Wales High Court in Chandler v. Cape plc, [2011] EWHC 951. In that case, the Court had held that in certain circumstances, a parent company would owe a duty of care to the employees of the subsidiary even in situations where the tests for lifting the corporate veil are not satisfied. This judgment has been affirmed today by...
Recent Comments