Tata Sons' Process Of Removal Of Cyrus Mistry Against Corporate Democracy: Divan Argues In Supreme Court

The courtroom battle in the Tata Sons case reached to day 6 of continuous hearings by the parties. A three judge bench headed by Chief Justice of India SA Bobde heard the arguments advanced by Mr. Shyam Divan, another Counsel appearing on behalf of Cyrus Mistry. Mr. Divan presented his arguments on three aspects. First, 10 main aspects relating to corporate governance and relationship between the SPG and Tata Sons; second, two Articles from the AoA and three, statutory provisions...

There Is No Constitutional Right For Insisting On Continuation Of Union's Stake In BPCL; Bombay HC Dismisses Petitions Challenging UOI's Decision To Disinvest

The Bombay High Court on Thursday dismissed petitions primarily challenging the decision taken by the union of India of in-principle disinvestment of its shareholding in Bharat Petroleum Corporation Ltd observing that there is no fundamental or constitutional right for insisting on continuation of Union's strategic stake in BPCL.Division bench of Justice SC Gupte and Justice Madhav Jamdar was hearing a writ petition filed by Federation of all Maharashtra Petrol Dealers Association along with...

SC Dismisses Mahua Moitra's Plea Challenging Exclusion Of Donations To CM's Relief Fund From CSR

The Supreme Court on Monday dismissed plea filed by TMC MP Mahua Moitra which challenged the Centre's circular which states that Chief Minister's Funds or State Relief Funds will not come within the purview of Corporate Social Responsibility (CSR) activities under Section 135 of the Companies Act. A Bench comprising of Justices Ashok Bhushan, R. Subhash Reddy ad BR Gavai heard the matter and noted that Moitra had filed a similar plea which had been dismissed on May 5, 2020....

[Company Secretary] SC Issues Notice On Plea Against MCA Increasing Mandatory Limit For CS Appointment As Rs 10 Crores Paid Up Capital

The Supreme Court on Wednesday issued notice in a plea seeking declaration of the notification dated January 1 by the Centre and its subsequent enforcement w.e.f. 01.04.2020 as being ultra-vires and repugnant to the article 14, 19(1)(g) of the Constitution of India. The impugned notification issued by the Ministry of Corporate Affairs has enhanced the mandatory limit for engaging Company Secretary from 5 Crore to 10 crores. The plea contends that lack of a robust mechanism leads to a large...

Advocates, Doctors, CAs Now Covered Under MSME Loan Scheme

The Union Finance Ministry has expanded the scope of the MSME loan scheme announced in the wake of COVID-19 to include professionals like doctors, lawyers, chartered accountants and others, reported the Financial Express.The 3-lakh crore scheme was announced by Finance Minister, Nirmala Sitharaman, in May as part of Government's 'Athmanirbhar package' to help the Micro, Small and Medium Enterprises."The government has decided to relax the eligibility criteria for tapping the Rs 3-lakh-crore...

Delhi HC Dismisses Plea Seeking Inclusion Of Advocates As Eligible Professionals To Access Benefits Under MSME Act

The Delhi High Court on Wednesday refused to entertain a plea seeking inclusion of advocates as eligible professionals under the scheme of Micro Small & Medium Enterprises Development Act, in order to make them eligible for beneficial credit facilities. While dismissing the PIL, the Division Bench of Chief Justice DN Patel and Justice Prateek Jalan highlighted that the original purpose of a Public Interest Litigation is to voice the concerns of the downtrodden. Filed by...

Taking White Collar Crime Seriously

A rising tide lifts all boats.[1]It is only when the tide goes out that you learn who has been swimming naked.[2]Afinancial crisis is often followed by a rise in financial crimes. A crisis, such as the one we now face, not only presents an opportunity (and greater motivation) for all sorts of financial shenanigans but also lays bare – the true financial position of a lot of corporations. You'd recall when the proverbial economic tide went-out in 2008 (because of the global financial crisis)...

A To Z Of The Insolvency And Bankruptcy Code: A Beginner's Guide (Part II)

In the previous part (click here), we gave you a general background to the Insolvency and Bankruptcy Code, 2016 (IBC) and tried unpacking some specific concepts crucial to its functioning. We introduced you to the central actors of the IBC regime: Adjudicating Authority (AA), Committee of Creditors (CoC) and financial creditors, including the latest addition to the group—homebuyers. Additionally, we briefly analysed some of the more advanced concepts such as 'cross-border insolvency', 'group...

MSMEs Move Gujarat HC Seeking Waiver Of Fixed Minimum Demand Electricity Charges [Read Petition]

The Gujarat High Court on Friday issued notice returnable within a week on a petition filed by Gujarat Re-Rolling Mills Association seeking waiver of fixed minimum demand electricity charges for the months of May and June, 2020. The plea drawn by Advocate Arpit R. Singhvi, states that the Distribution Companies are demanding fixed demand electricity charges for the month of May, 2020, despite the lockdown being in force and no business activities having been resumed.The petitioner is an...

Contributions By Corporates To PM CARES Fund To Be Considered As CSR Activity: Centre Amends Schedule VII Of Companies Act [Read Notification]

Contributions made by companies to PM CARES will be considered as Corporate Social Responsibility funds under the Companies Act 2013. The Government has issued a notification amending Schedule VII of the Companies Act 2013 for this purpose. The notification shall be deemed to have come into force on 28th March, 2020. Section 135 of the Companies Act, 2013, mandates all companies, having net worth of 500 crore, or turnover of 1000 crore or more or a net profit of 500 crore or more during a...

MSME Act : Legal Conundrum In Definition of 'Supplier' Under Micro, Small and Medium Enterprises Development Act

1. This article aims to address the conflict in the interpretations of various High Courts of India to the definition of 'supplier' as enumerated under Section 2(n) of the Micro, Small and Medium Enterprises Development Act of 2006, and its impact on reference of disputes to the Micro and Small Enterprises Facilitation Council (Facilitation Council). 2. The Micro, Small and Medium Enterprises Development Act of 2006 (The Act) was brought into force by the...

Technical Defaults Under Companies Act To Be Decriminalized : Minister Of Corporate Affairs

Nirmala Sitharaman, Union Minister of Corporate Affairs, on Sunday announced the plans to decriminalize various technical defaults under the Companies Act 2013.Violations involving minor and procedural defaults such as shortcomings in CSR reporting, inadequacies in board reports, filing defaults, delay in holding AGM etc will be decriminalized, said Nirmala Sitharaman, Finance Minister, while announcing the last tranche of economic stimulus package on Sunday.Majority of the compoundable offences...