Fast Track Mergers in India

“We get talent and scale from mergers”-Angela Braly Introduction: Fast Track Merger (FTM) is defined by Section 233 of the Companies Act of 2013, as well as Rule 25 of the Companies (Compromises, Arrangements, and Amalgamations) Rules of 2016. FTM is a new idea that has been established in India to make doing business easier.... Continue Reading →

Ponzi Schemes

Introduction A Ponzi scheme is a fraudulent investment designed to defraud investors. It entails enticing the general public to invest in dubious yet lucrative schemes. With almost little real income, they rely on a steady stream of new money to stay afloat. The scheme collapses when there are no new investors or when existing investors... Continue Reading →

College as State

Can a government college be recognised as the State under the Companies Act? This is a main contention that was raised, especially in cases of discriminatory practices that are alleged to have happened in these colleges. In such cases can the college be tried under Article 14? These are a few questions that arise when... Continue Reading →

Liability of Promoter

The role of promoters in setting up a company cannot be denied. Like the famous Spiderman quote with great power comes great responsibility, the role of a promoter holds a lot of accountability. Due to the separate personality of a company, promoters may tend to misuse this in order to gain silent profits or exploit... Continue Reading →

FOSS v/s HARBOTTLE

TITLE OF THE CASE: Foss v Harbottle CITATION: [1843] 67 ER 189, (1843) 2 Hare 461 COURT: Court of Chancery BENCH: Wigram VC, Jenkins LJ PETITIONER: Richard Foss and Edward Starkie Turton DEFENDANTS: Thomas Harbottle & Other’s INTRODUCTION: The case of FOSS v HARBOTTLE is a key precedent in English corporate law. According to the... Continue Reading →

WINDING UP OF COMPANY

INTRODUCTION TO WINDING UP OF A COMPANY In case of winding up and dissolution, along with the Companies Act, 2013, the Insolvency & Bankruptcy Code, 2016 is also applicable to provide time bound resolution and eliminate the longer procedures along with protection of interest of creditors from insolvent company initiating for winding up procedures. One... Continue Reading →

The probable ways by which a company can raise capital along with its hindrances

The probable ways are: LOANS- These are the short- term loans that a company acquires in order to raise capital and it is acquired via keeping the assets of the company as security but the creditors do not become the co-owners of the company. Hindrances- That they tend to increase the debt of the company... Continue Reading →

doctrines in company law

DOCTRINE OF ULTRA VIRES: The process of doing an act which is beyond the legal power and authority of the company and these acts does not create any legal relationship and thus is absolutely void. In the case of Eastern countries Rly. vs. Hawkes[1], it was held that the legal personality of the company exists... Continue Reading →

Corporate social responsibility

Introduction The term corporate social responsibility gives a chance to all the employees of an organization to contribute towards the society, environment, and country and so on. CSR stands for Corporate Social Responsibility and is a business’s approach to sustainable development by delivering economic, social and environmental benefits. It also encapsulates the initiatives by which... Continue Reading →

Lifting of corporate veil

A company is considered a separate legal person in law. This means that a company has the right to sue and be sued. It also means that the company can own property and has an existence separate from its directors. It also means that for any wrong or fraud that happens in a company, the... Continue Reading →

Partnership Act, 1932

Introduction: A Partnership is a legal relation between persons who have agreed to work together to perform certain business activities. The persons in a partnership have agreed to share the profits in the desired ratio of the business carried on by all or by some of them. A  Partnership is defined as the relationship between... Continue Reading →

Digital Signature Certificate

Definition Digital Signature Certificate or popularly known as DSC are basically the softcopy (electronic format) of a physical signed copy of a certificate such as Aadhar card, Voter Id card, Driving license, and so on. These are usually in pdf format and can be stored in smartphones or PCs. This method reduces the necessity of... Continue Reading →

TRANSFER OF SHARE AND ITS RESTRICTIONS UNDER COMPANIES, 2013

INTRODUCTIONIn this project we shall be dealing with the Transfer of shares. Transfer of shares means the voluntary handing over of the rights and possibly, the duties of a member (as represented in a share of the company) from a shareholder who wishes to not be a member in the company any more to a... Continue Reading →

MEMORANDUM OF ASSOCIATION

A company is born when several people come together to achieve a specific purpose or work together towards a particular goal or objective. They are generally formed for the earning of profit from business activities. Seven or more persons coming together forms a public company, whereas two or more persons can join hands to form... Continue Reading →

LIFTING OF CORPORATE VEIL

Before talking about lifting the corporate, the important thing to know what a “Company” is. According to Sec 3(1)(i) of thew Companies Act, 2013, a company means a company formed and registered under this Act or an existing company defined in sec 3(1)(ii) of this act. The company must be registered under the Companies Act... Continue Reading →

Impact of stricter SEBI norms for independent directors

The Securities and Exchange Board of India (SEBI) is the statutory regulatory body under the jurisdiction of the Ministry of Finance, Government of India for securities and commodity market in India. On 29th June the SEBI board permitted amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provisions pertaining to independent directors. Independent... Continue Reading →

Merger and its type

A merger can be defined as combining two or more things to form one object in layman's language. Under company law, it can be explained as combining two or more entities for one company, which results in combining all the assets and liabilities under one company. For example- there are two companies, A and B, which... Continue Reading →

HOW TO PROTECT A COMPANY FROM THE WRATH OF THE MODERN CRIME

Some steps can be implemented by the companies internationally in-order to curb and significantly reduce the damages crated by such espionages such as Conduct a risk assessment,Establish an effective security policy ,Maintain an efficient data access policy,Secure your infrastructure,Educate employees ,Conduct background checks,Create a proper termination procedure,Monitor employee activity.Find potential targets. It is necessary to to grasp... Continue Reading →

All about Limited Liability Partnership:

A Limited Liability Partnership (LLP) is a kind of partnership in some type of company where all of the parties have limited liability. This means that none of the partners was liable for the damages, negligence, or wrongdoing of the others. This is referred to as a Limited Liability Partnership since each partner is only... Continue Reading →

BYe LAWS

As simple as it gets, a bye law is a law or a rule governing the internal affairs of an organization. It is a rule made by a local authority for the regulation of its affairs or  management of the area it governs. A by law is a subsidiary law. It refers to a rule... Continue Reading →

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