Entries by Staff

Workshop on Related Party Transactions

Considering the overwhelming response to our workshop held on January 21, 2022, we are announcing the 2nd round of the session on RPTs. Click here to register: https://forms.gle/7Y1DZaHsCaKrRo1Z6 Our resources on the topic can be found here: https://vinodkothari.com/article-corner-on-related-party-transactions/

Factors’ Registration Regulations: Going back to Square-one?

– Megha Mittal mittal@vinodkothari.com On 14th January, 2022, the Reserve Bank of India (‘RBI’) notified the Registration of Factors (Reserve Bank) Regulations, 2022[1] (‘Registration Regulations’) laying down the manner of granting Certificate of Registration (‘CoR’) to companies which propose to do factoring business. Applicable with immediate effect, this may essentially seem like an undoing of […]

The nitty-gritty of shareholders’ approval for material RPTs

– A guide for practical implementation under the revised LODR framework – Team Vinod Kothari and Company; corplaw@vinodkothari.com Regulation 23(4) of the Listing Regulations require all material related party transactions (‘Material RPTs’) to be approved by the shareholders of the listed entity. With the commencement of the LODR (Sixth Amendment) Regulations, 2021 (‘6th Amendment Regulations’), […]

Auditors’ disqualification on account of business relationships: purport and scope

–  Neha Malu, Executive (corplaw@vinodkothari.com) Background Considering the key significance of auditors’ independence in ensuring the integrity of the statutory audit function, the Companies Act, 2013 (‘Act’) has prescribed several eligibility conditions, qualifications as well as disqualifications for their appointment. While there are several disqualifications under section 141, which includes indebtedness, provision of guarantee, conviction, […]

Comments on proposed changes to the Corporate Insolvency Resolution and Liquidation Framework under Insolvency and Bankruptcy Code, 2016

– Team Resolution (resolve@vinodkothari.com) On 23rd December, 2021, the Ministry of Corporate Affairs has issued proposed changes to the Corporate Insolvency Resolution and Liquidation Framework under Insolvency and Bankruptcy Code, 2016[1] and has solicited comments on the same. While we discuss the proposed amendments in details below, a bird’s eye view of the proposed amendments […]

Treatment of Lease Transactions under Insolvency and Bankruptcy proceedings

– Devika Agrawal and Anshit Aggrawal, Executive  (resolution@vinodkothari.com) The determination of the nature of debt has been one of the primary tasks before a Resolution Professional/ Liquidator, and also for the stakeholders. The classification of debt is an important consideration since there exist only two types of debt under the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to […]

Can companies donate out all their assets?

– Is sarvasva samarpan by companies valid? Pammy Jaiswal, Partner and Payal Agarwal, Senior Executive (corplaw@vinodkothari.com) Companies are creatures of their shareholders. If the company is a private company, the business and wealth of the company is the property of its shareholders. Technically, shareholders own the shares of the company, and certainly, a shareholder may […]