[Akhil Kumar is a fifth year BA LLB (Hons.) student and Ayushi Singh a fourth year BA LLB (Hons.) student, both at NUALS, Kochi] The Ministry of Corporate Affairs has been considering the introduction of a pre-packaged insolvency process to the Insolvency and Bankruptcy Code, 2016 and has invited comments from stakeholders. The proposal is in line with the objectives of the code to ensure...
SEBI Committee on Regulating Proxy Advisors
Over the last decade, India has witnessed considerable shareholder activism in that shareholders, particularly institutions, have become more active in exercising their corporate franchise. Proxy advisory firms have formed an integral part of this movement, as they provide advice to both institutional and individual shareholders on how they may exercise votes at shareholder meetings of companies...
The IBC Amendment Bill: Defending the Design of the IBC
[Shreya Prakash is the Coordinator of the Vidhi Bankruptcy Research Programme] The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 passed by Parliament last week proposes key amendments to the Code, to reduce uncertainty in the market on issues that go to the heart of the design of the scheme of the Code. While the Bill proposes various amendments to reduce delays in the process, and binds...
Revisiting The Tale Of The Stubborn Law: The Saga of ‘Venue’ vs. ‘Seat’ Of Arbitration
[Kunal Dey is a Judicial Research Assistant] The simple yet intriguing concepts of ‘seat’ vs. ‘venue’ of arbitration has been at the core of many judicial decisions by various High Courts and the Supreme Court of India who have time and again strived to put the issue to rest. In 2018, the substantial question was assumed to be decided by the landmark judgment of the Supreme Court in the case of...
Appointment of Judges to the Appellate Dispute Settlement Body of the WTO: The Ongoing Impasse
[Jyotsana Singh is a fifth-year student at National Law School of India University, Bangalore] The Dispute Settlement Body (DSB) of the World Trade Organization (WTO), popularly referred to as the ‘crown jewel’ of the said organization, is experiencing an unprecedented crisis. This crisis revolves around the issue of the American attempts at stalling the appointment of judges to the Appellate...
Call for Submissions: Trade, Law and Development
[Announcement on behalf of Trade, Law and Development] The Board of Editors of Trade, Law and Development (TL&D) is pleased to invite original, unpublished manuscripts for publication in the Winter ’19 Issue of the Journal (Vol. 11, No. 2) in the form of Articles, Notes, Comments and Book Reviews. Manuscripts submitted by September 30, 2019 pertaining to any area within the purview of...
Delhi High Court Upholds the Interests of Direct Sellers: A Ray of Hope?
[Deeksha Gabra is a chartered accountant and Shivam Gupta is a final-year law student at the Rajiv Gandhi National University of Law, Punjab] Direct selling (also known as network marketing or multi-level marketing), as the name suggests, refers to selling products directly to the consumer in a non-retail environment. The product moves from the manufacturer to a direct sales company, which are...
SEBI’s Consultative Paper: A Step towards a Stricter Regime for Auditor Resignation
[Shreshtha Mathur is a fourth year law student at National Law University, Jodhpur] A statutory auditor is appointed by a company according to the statutory requirement, in order to inspect and form an opinion about the fair presentation of a company’s accounts. Section 139 of the Companies Act, 2013 mandates that every company must appoint an individual or a firm as an auditor at its first...
The Effect of an Increased Free Float on India’s Promoter-Controlled Companies
[Shiluti Walling is a 4th year B.A., LL.B. (Business Law Hons.) student at National Law University, Jodhpur] The Union Finance Minister recently proposed the increase of the minimum public shareholding (MPS or free float) from 25% to 35%. Prior to the proposal, public shareholders of a listed company were required to hold at least 25% of the paid-up capital of the company as free float, pursuant...
Liquidation Regulations: Far-Reaching Changes to Make Liquidations Faster, Smoother
[Vinod Kothari is an insolvency practitioner at Vinod Kothari & Co and can be reached at [email protected]] The attention that reforms in liquidation regulations has received, relative to what has gone into the case of resolution, is far lesser than deserved, given the percentage of the resolution cases that slip into liquidation. Most of the major liquidations initiated 12 to 18...
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