Clasis Law updates

Actual realistic costs: an elusive hope for expeditious litigation
Clasis Law
  • Litigation
  • India
  • 16 March 2021

The judiciary has frequently acknowledged the ill effects of lingering litigation. Accordingly, several mechanisms have been introduced to provide some respite to clogged judicial instruments. At the same time, the courts have professed the effective application of existing devices to reduce vexatious and frivolous claims. The awarding of actual realistic costs is one step towards better employment of the legal provisions to tame the ever-growing expanse of false, frivolous and vindictive claims.

Key changes under Foreign Contribution (Regulation) Amendment Act
Clasis Law
  • Corporate & Commercial
  • India
  • 01 March 2021

The central government recently notified the Foreign Contribution (Regulation) Amendment Act. The amendment act aims to strengthen organisations' compliance mechanisms, enhance transparency and accountability in the use of foreign contributions and prevent the misuse of funds received from foreign contributions by certain organisations and instead promote the use of such funds by genuine non-governmental organisations which are working to improve the welfare of society.

Key takeaways from Companies (Amendment) Act
Clasis Law
  • Corporate & Commercial
  • India
  • 01 February 2021

The Companies (Amendment) Act recently entered into force and aims to decriminalise minor, technical and procedural non-compliance based on the nature and gravity of such offences, thereby facilitating and promoting the ease of doing business and further facilitating the ease of living for law-abiding corporates in India.

Analysing recent amendments to corporate social responsibility legislation
Clasis Law
  • Corporate & Commercial
  • India
  • 30 November 2020

The Companies Act 2013 is the exclusive legislation which deals with corporate social responsibility (CSR) provisions in India. In response to the COVID-19 pandemic, the Ministry of Corporate Affairs has issued various amendments to the Companies Act. On the one hand, the amendments propose to provide ease of compliance to companies; however, on the other, they also seek to penalise companies and their officers for non-compliance with CSR provisions.

Companies (Amendment) Act and Foreign Contribution (Regulation) Amendment Act enacted
Clasis Law
  • Corporate & Commercial
  • India
  • 26 October 2020

The Companies (Amendment) Act 2020 and the Foreign Contribution (Regulation) Amendment Act 2020 recently came into force, amending the Companies Act 2013 and the Foreign Contribution (Regulation) Act 2010. This article sets out the salient changes introduced by both amendment acts, including with respect to producer companies, offences and the remuneration of non-executive directors.

MCA temporarily allows virtual AGMs: help or hindrance?
Clasis Law
  • Corporate & Commercial
  • India
  • 21 September 2020

In view of the COVID-19 pandemic and continuing restrictions on the movement of individuals, the Ministry of Corporate Affairs (MCA) recently issued a circular allowing companies to convene their annual general meeting (AGM) through videoconferencing or other audiovisual means (ie, electronically). With AGMs around the corner, it will be interesting to see how companies will hold virtual AGMs in practice and whether companies and their members will welcome the MCA's relaxations.

Decriminalisation of offences under Companies Act: need of the hour
Clasis Law
  • Corporate & Commercial
  • India
  • 31 August 2020

India's company law regime has evolved over the years and become stricter and more penal in nature. There has been a paradigm shift in the legislature's viewpoint with regard to the Companies Act's stringency. There has also been a recent trend to promote foreign investment in India. Accordingly, the legislature has adopted measures in order to decriminalise – or at least liberalise – India's company law regime.

Snapshot of procedural guidelines for proxy advisers
Clasis Law
  • Corporate & Commercial
  • India
  • 17 August 2020

Proxy advisers have gained prominence over recent years in relation to corporate governance matters and have become an integral part of shareholder activism in India. In order to standardise the process across proxy advisory firms, the Securities and Exchange Board of India recently issued its Procedural Guidelines for Proxy Advisers and a circular on grievance resolution between listed entities and proxy advisers.

Reclassification of micro, small and medium enterprises provides stimulus to enterprises in light of COVID-19
Clasis Law
  • Corporate & Commercial
  • India
  • 03 August 2020

The Ministry of Micro, Small and Medium Enterprises recently notified certain criteria for classifying enterprises as micro, small and medium enterprises (MSMEs) and specified the form and procedure for filing the applicable memorandum. The change in the classification of MSMEs is a part of the relief package offered to the MSME sector amid the COVID-19 outbreak. This reclassification has been well received across sectors as it will help MSMEs to increase in size without losing their entitled benefits.

MCA temporarily allows certain restricted corporate actions to occur at virtual board meetings
Clasis Law
  • Corporate & Commercial
  • India
  • 13 July 2020

The COVID-19 pandemic has affected businesses' ability to comply with various statutory rules and regulations due to lockdowns and other social distancing measures. The government – particularly the Ministry of Corporate Affairs (MCA) – has proactively introduced various measures to support companies in their ability to comply with the Companies Act 2013. Most notably, the MCA has relaxed the restrictions around which corporate actions can occur at virtual board meetings until 30 September 2020.

Laws governing companies: overview
Clasis Law
  • Corporate & Commercial
  • India
  • 22 June 2020

When setting up a business in India, attention must be paid to the laws which govern companies. Of particular note is the Companies Act, which encompasses a wide range of provisions relating to governance, including with regard to incorporation, capital infusion, management and administration, audits and accountability.

Setting up a business in India
Clasis Law
  • Corporate & Commercial
  • India
  • 15 June 2020

When setting up a business, it is crucial to determine the appropriate legal entity in view of the business's exact needs. The entity should be relevant from a fundraising and taxation perspective and with respect to the foreign direct investment norms in light of the nature of the business and the activities that it proposes to conduct. For instance, certain relaxations are offered to limited liability partnerships which are not offered to companies and vice versa.

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