Entries by Team Corplaw

Legal Entity Identifier Code now mandatory for bond issuers

May 4, 2023 /1 Comment/in , , /by

Ajay Ramanathan, Executive | ajay@vinodkothari.com Background Legal Entity Identifier (LEI) Code is a unique 20-digit code used to identify legal entities that engage in financial transactions worldwide in order to improve the quality and accuracy of financial data systems for better risk management post the global financial crisis by establishing a global reference system. Prior […]

Corporate succession events: Treatment of unspent or overspent CSR obligations

April 7, 2023 /1 Comment/in , /by

CS Aisha Begum Ansari, Manager & Payal Agarwal, Deputy Manager | corplaw@vinodkothari.com Background The identity of a corporate entity may undergo various restructurings, either in the form of merger, demerger, sale of one or more divisions or undertakings. conversion of a company into LLP etc. Let us, for the sake of convenience, call them a […]

The triumphs and tribulations of being a promoter in listed entities

March 29, 2023 /0 Comments/in , , , /by

– Team Corplaw | corplaw@vinodkothari.com Introduction The classic rule of Solomon, that the shareholders are different and the company that they promote is different, and that the liabilities of the company cannot be passed over to the shareholders, seems to be getting constantly indented, particularly as courts and regulators realize that companies are inanimate; it […]

Holding of promoter shares through investment companies: Dividend restrictions clog upstreaming and create tax inefficiency

March 24, 2023 /0 Comments/in , , /by

Vinod Kothari & Payal Agarwal | corplaw@vinodkothari.com Most of the promoter holdings in India, in companies large and small, are funneled through group investment companies. These companies, often with a complicated network of cross holdings, were created historically with multiple motives. While shadier motives such as re-routing of black money belong to some decades old […]

Comparative analysis between Social Sector Entities- Section 8 companies and Trusts

March 8, 2023 /0 Comments/in , /by

– Team Corplaw | corplaw@vinodkothari.com Social sector entities can be of various types like a section 8 company, trust, societies, etc. The common idea behind these entities is the promotion of social welfare activities. Even with the common objective in place, there are various differentiating features between them. This write up is a comparative analysis […]