COMPANY LAW
Small Shareholders Director Under The Companies Act, 2013
The concept of small shareholder director was introduced to safeguard the interests of small shareholders in a company. The appointment of a small shareholder director is a measure taken to ensure that the small shareholders of a company are adequately represented and to prevent the board of directors from taking any decisions that are detrimental to the interests of small shareholders. According to the Companies Act, 2013 small shareholders are those who have relatively less shares...
No Mandatory Requirement Of Aadhaar For MSME Udyam Registration: Centre To Gujarat High Court
The Ministry of Micro, Small and Medium Enterprises (MSME) on Monday informed the Gujarat High Court that there is no mandatory requirement of Aadhaar Number for registration of businesses with MSME Udyam Registration.The Court was hearing a PIL seeking quashing of the part of the Notification dated June 26, 2020 issued by MSME, so far as it allegedly mandatorily demands Aadhaar Number from...
Protection Of Minority Shareholders And Related Party Transactions
The Company is an artificial entity incorporated under the Companies Act, 2013[1] (hereinafter, ‘Company Act’), and conducts its affairs through its board of directors who owe a duty to take care towards all the stakeholders of the company and to conduct the affairs of the company in a neutral and unbiased manner. Shareholders of a Company can be in broad terms divided into majority shareholders and minority shareholders. Majority shareholders are those who have more than 51% or more...
Lifting Or Piercing Of Corporate Veil
Owing to the rising economic development and advancements within the corporate framework, the corporate world has witnessed various false statements, frauds, and insider trading. The concept of 'Corporate Veil' came into being in order to safeguard the members from the actions of the company. This piece of writing will discuss the "Piercing of Corporate Veil" underneath the "Companies Act...
A Move Towards Ease Of Doing Business: Amended Definition Of A Small Company
The Ministry of Corporate Affairs ("MCA") has recently implemented a number of initiatives aimed at making it easier for companies to conduct their business and function with ease, a few of these are as follows: extending fast track mergers to start-ups, encouraging the incorporation of One Person Company ("OPC"), decriminalizing certain aspects of the Companies Act, 2013 r/w the...
White-Collar Crimes Not Committed By Sudden Provocation But With Deep Understanding Of Consequences: Madras High Court
Denying bail to the former CEO of Surana Group of Companies in the alleged case of defrauding various banks to the tune of Rs 10,000 Crore, the Madras High Court recently observed that white-collar crimes are particularly harmful to the society as they are committed by well-educated and influential persons who understood the consequence of their actions. Justice AD Jagadish Chandira in...
Foreign Direct Investment In India: Law And Procedure
1.1 What is FDI? Foreign Direct Investment is an investment when a foreign company or individual acquires the stakes in the ownership of a business situated in another country. In terms of Rule 2(r) of Foreign Exchange Management (Non-debt Instruments) Rules, 2019, "Foreign Direct Investment means investment through equity instruments by a person resident outside India in an...
NCLT Hyderabad Directs Emaar Group To Compensate Govt. Of Telangana In The Case Share Transfer To Emmar MGF Land Ltd
The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Shri Bhaskara Pantula Mohan (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), while adjudicating an application filed in Telangana State Industrial Infrastructure Corporation v M/s Emaar Hills Township Pvt. Ltd. & Ors., has allowed a petition filed under Section 241-242 of the Companies Act,...
S.138 NI Act | Non-Executive Directors Not Liable For Company's Actions/ Omissions Unless Involved In Day-To-Day Affairs: Bombay High Court
The Bombay High Court has quashed criminal proceedings against independent non-executive directors of Tecpro Systems Ltd while stating that they were not responsible for day-to-day functioning of the company. The court was dealing with an application requesting quashing of criminal proceedings before the trial court in a cheque bounce case under the Negotiable...
Company Law Committee Report 2022 Suggests Many Amendments, Including Issue Of Fractional Shares
The latest Company Law Committee Report(CLC Report)of 2022 has proposed various significant amendments to the existing framework of the Companies Act, 2013 and some in the Limited Liability Partnership Act, 2008 ("LLP Act"). The Company Law Committee has been constituted by the Ministry of Corporate Affairs (MCA) and entrusted with responsibilities including promotion of greater ease of doing business for law-abiding corporates and improving the operational efficiency of the Companies...
Municipal Authority Can Rely On Previous Blacklisting Resolution Which Is Set Aside By Court, Must Justify It In Final Order: Gujarat High Court
The Gujarat High Court has permitted the Vadodara Municipal Corporation to rely on a previous blacklisting order passed by it against a Road Contractor, which was set aside by the High Court for being non-compliant with principles of natural justice, while issuing a fresh notice to the contractor in relation to three work orders.However, the Bench comprising Chief Justice Justice Aravind...