Company Law - Corporate Law Reporter

Ministry of Food Processing clarification on SPV for Management of Mega Food Parks

The execution, ownership and management of the Mega Food Park is vested with a Special Purpose Vehicle (SPV). The main eligibility criteria of the SPV is indicated below: i. The SPV shall be a Body Corporate registered under the Companies Act. ii. Each SPV would have at least three entrepreneurs / business units, with the… Read More

SEBI Board Meeting

The SEBI Board met in New Delhi today and took the following decisions: Regulations for issuance and listing of non-convertible redeemable preference shares: The Board approved the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 thereby providing a comprehensive regulatory framework for issuance and listing of non-convertible redeemable preference shares. As in… Read More

Sanction of Scheme u/s 394 of Companies Act constitutes an “instrument” and “conveyance” within the meaning of the Stamp Act

CLR Editorial Notes: In the present case the aforementioned companies filed petitions before the High Court of Calcutta seeking exclusion of payment of stamp duty on transfer of properties pursuant to a sanction of Scheme under the Companies Act. The High Court of Calcutta has held that an order sanctioning a scheme of amalgamation or… Read More

Compulsory registration with trade associations before exhibition of product is anti-competitive in terms of the provisions of Section 3 of the Competition Act

CLR Editorial Notes: In the present case, the informant (M/s. Shri Ashtavinayak Cine Vision Limited) has alleged that local association of distributors and exhibitors by making it compulsory for every film distributor to become their member and/ or register its film with the associations before the exhibition of such films, are strengthening their dominant position… Read More

Registrar of Companies- Cum- Official Liquidator Office to be Established at Bilaspur

A decision has been taken to establish an office of Registrar of Companies- cum- Official Liquidator, Chhattisgarh, at Bilaspur. Giving this information in written reply to a question in the Lok Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, said that his Ministry has already taken steps to establish this office at Bilaspur, for… Read More

Contractor™s liability to pay gratuity can be fastened on the principal employer

CLR Editorial Notes: In the present case the Madras High Court, was called upon to decide on an issue dealing with the payment of gratuity to an employee of the Mettur Thermal Power, for the period from 16.2.1988 to 30.4.1999, while performing services as a contract employee. The court held that even the contractor liability… Read More

Even on the termination of the agreement/contract, the arbitration agreement would still survive

CLR Editorial Note: The main issue in dispute in the present case was whether disputes that have arisen in relation to the termination of the MOU and the consequences thereof, are covered by the arbitration clause in the MOU which clearly provides for resolution of disputes through arbitration. The Supreme Court has held that since the… Read More

SEBI Constitutes Committee to review Insider Trading Regulations

Two decades have passed since the SEBI (Prohibition of Insider Trading) Regulations, 1992 were notified which was framed to deter the practice of insider trading in the securities of listed companies. Since then there have been several amendments to the Regulations and judicial paradigm through case laws have also evolved in India. In fact, world… Read More

Companies eligible for shifting from Trade for Trade Settlement to Normal Rolling Settlement

CIRCULAR CIR/MRD/DP/ 07 /2013 March 05, 2013 To, All Stock Exchanges Dear Sir / Madam, Sub: Establishment of Connectivity with both depositories NSDL and CDSL Companies eligible for shifting from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement 1. It is observed from the information provided by the depositories that the companies listed in… Read More

Action taken on Anti-Competitive Agreements by the Competition Commission of India

During the last three years, the Competition Commission of India (CCI) has passed Cease and Desist Orders in 14 cases; and Cease and Desist Orders along with a penalty of Rs.7,354.11 crore in another 14 cases of anti-competitive agreements. Giving this information in written reply to a question in the Rajya Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, said that the parties… Read More

MCA clairifies on the laws under which to take Action against Fraudulent Companies

Companies floating fraudulent investment deposits mobilizing schemes (also called ˜ponzi schemes™) under various guises are liable for action under the following laws: (i) The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 administered by Ministry of Finance (Department of Financial Services) through the State Governments; and (ii) Section 11AA of the Securities and Exchange… Read More

Committee constituted for Inquiry into Wal-Mart lobbying issue

Inquiry into Wal-Mart™s Lobbying Activities A Committee, under Shri Justice Mukul Mudgal, former Chief Justice of Punjab and Haryana High Court has been constituted, vide Resolution dated 31.01.2013, with the following Terms of Reference: (i) To inquire into recent media reports on disclosures of Wal-Mart before the US Senate regarding their lobbying activities and details… Read More

MCA issues clarification on “adequacy” of Debenture Redemption Reserve

Circular No. 4/2013 No. 11/02/2o12-CL-V (A) Government of India Ministry of Corporate Affairs 5th floor 'A'Wing' Shastri Bhavan, Dr. R.P. Road, New Delhi. Dated: 11.02.2013 To All Regional Directors All Registrars of Companies All Chambers of Commerce The Reserve Bank of India The Securities and Exchange Board of India Subject: Debenture Redemption Reserve (DRR)- Clarification. Sir, The… Read More