Resurrecting the Dead- A discussion around schemes of arrangement in liquidation
/2 Comments/in Companies Act 2013, Insolvency and Bankruptcy /by Vinod Kothari Consultants-Sikha Bansal
In India, the provisions for schemes of compromises/arrangements have formed a part of the Indian Companies Act, 1913 and then the successors – the Companies Act, 1956/2013 following the English law.
After Sick Industrial Companies (Special Provisions) Act, 1985 (‘SICA’) was enacted, it was not possible to invoke the provisions relating to the schemes of compromise/arrangement for companies under BIFR[1]. However, the Insolvency and Bankruptcy Code, 2016 (‘Code’) made amendments[2] in section 230 of the Companies Act, 2013 so as to include a liquidator appointed under the Code as eligible to propose a scheme under that section. Later, the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (‘Regulations’) were amended[3] to facilitate schemes under section 230 of the Companies Act, 2013. Given that the company gets a fair chance of resolution under the Code before being pushed to liquidation, the window for completion of scheme has been provided only for the initial duration of 90 days from the liquidation order. Read more →
SEBI disallows investment by Mutual Funds in unlisted debt instruments
/0 Comments/in Capital Markets, Financial Services, SEBI /by Vinod Kothari ConsultantsControl over equity instruments moves from RBI to CG
/0 Comments/in FEMA, RBI /by Vinod Kothari ConsultantsDirector’s liability has a nexus with his role and not the position
/0 Comments/in SEBI /by Vinod Kothari Consultants– Pammy Jaiswal, Partner | corplaw@vinodkothari.com Updated as on 22nd July, 2022 Background While there has been a lot of rulings on the liability of directors, the question that mostly cropped up for examination was with respect to their involvement in the day-to-day operations. The liability of non-executive directors has mostly been scanned to evaluate […]