Entries by Staff

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

January 14, 2022 /0 Comments/in , /by

–  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

January 13, 2022 /0 Comments/in , /by

– 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

January 13, 2022 /0 Comments/in , , /by

– 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?

January 9, 2022 /0 Comments/in , , , /by

– 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 […]

Circulation of credit information: RBI notification paves the way for “Specified Users”

January 7, 2022 /0 Comments/in , , /by

– Team Finserv | finserv@vinodkothari.com Background One of the important elements of the lending process is credit evaluation of customers, which involves referring to the credit information of such customers. Credit information is the information relating to credit performance or credit worthiness of the customer. Procurement, storage and distribution of such credit information is regulated […]

NHB Master Circular on HFC Returns

January 4, 2022 /0 Comments/in , /by

– Team Finserv | finserv@vinodkothari.com Relevant Links: NHB Master Circular dated December 31, 2021 Formats of the returns and statements specified in the Master Circular ORMIS Portal HFC Manual for filing on ORMIS Portal Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021

Decoding the Direct Selling Rules

December 30, 2021 /1 Comment/in /by

Kanakprabha Jethani | Manager and Ridhima Jain | Executive (finserv@vinodkothari.com) Background The Ministry of Consumer Affairs on 28th December, 2021 issued Consumer Protection (Direct Selling) Rules, 2021 (‘Rules’)[1], which provide for several compliance requirements for direct selling agents. With issuance of the said Rules, there have been questions on who will be covered by these […]

Grounds for grant of waiver under section 244 of Companies Act

December 30, 2021 /1 Comment/in , /by

Exploring the Judicial Perspectives – Pieyusha Sharma, Assistant Manager | corplaw@vinodkothari.com PROLOGUE Majority always prevails in corporate democracy. The management of the company is based on the majority rule i.e all matters decided in a general meeting ensue from majority voting which may overlook interests of minority. The need to balance the rights of majority and […]

SEBI notifies stricter norms for appointment of rejected candidates

December 30, 2021 /0 Comments/in , , /by

– CS Aisha Begum Ansari, Manager | aisha@vinodkothari.com | Last updated as on January 24, 2022 SEBI vide notification dated January 24, 2022 has notified SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2022 (‘Amendment Regulations’) applicable with immediate effect. With this amendment, SEBI has introduced provisions relating to appointment/ re-appointment of a person, including Managing Director […]