When can a nominee director be interested, by Nitu Poddar

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Nominee directors are usually appointed by the financial institutions or investors (”Nominator”) on the board of the borrower company for the purpose of representing and safeguarding their interest thereof. Such Nominee directors are liable to perform duty towards the borrower company and its stakeholders under section 166 and other provisions of the Companies Act, 2013 and also towards its Nominator for representing and safeguarding its interest. Read more →

Interpretation of the word “Dispute” – Resolution application by the operational creditors, by Nitu Poddar

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For filing application under the Insolvency and Bankruptcy Code, 2016 (IBC), the operational creditor has to serve a prior 10 days demand notice to the corporate debtor. The corporate debtor can either make payment on receipt of such demand notice or bring to the notice of the operational creditor existence of dispute, if any, and record of pendency of the suit or arbitration proceedings filed before the receipt of such notice. In case payment has already been made, the corporate debtor should send back the proof of such payment to the operational creditor.   Read more →

Reporting Requirements of SFT for NBFC’s

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The government has been scrambling since the demonetisation drive began to stay a step ahead of black money hoarders and to keep a check on transactions made by the companies. Many companies including NBFC’s are facing the wrath of the government’s policies moves in the recent times To add to it, the reporting of Statement of Financial Transaction under Section 285BA[1] of Income Tax Act 1961 has added more to their compliance requirements. Read more →

Effectiveness of Appointed Date in a Scheme of Arrangement, by Vallari Dubey

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Background

Every time a new Act is introduced, it brings with itself a fresh set of regulations. The Companies Act, 2013[1] (‘the Act’) is one astounding example of the same. What makes this Act stand out is the fact that it replaced decades old Companies Act, 1956. With the Act in force, several erstwhile concepts have been modified, replaced or even struck down; some new concepts have been drawn in with much emphasis on the peculiarity of present economic scenario in the country. Though, substantial portion of the Act has replaced the old version; some matters hold the same attributes, mutatis mutandis along with specific inclusions clarifying what was always assumed to subsist. One such matter pertains to the concept of ‘Appointed Date’ and ‘Effective Date’ in any Scheme of Arrangement vis. Scheme of Amalgamation/Merger/Demerger. Read more →

Meeting of Committee of Creditors – Insolvency Code , by Nitu Poddar

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Practice makes a man perfect and the same practice (read: implementation) makes a law seamless. Insolvency and Bankruptcy Code, 2016 along with its allied rules and regulation is just a year old technically (and around 5 months old effectively) and surely there are gaps which are being detected during implementation. Read more →