Limited liability partnerships in the country may not get access to cheap overseas funds, which could discourage big firms from switching to this form of business that combine the features of companies and partnerships. The finance ministry and the Reserve Bank of India have opposed changes in the external commercial borrowings (ECB) policy to allow [...]
Archive for the ‘Company Law’ Category
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Independent director’s short tenure a constraint in building a relationship of trust
Posted by admin on October 18th, 2010
The Companies Bill 2009 has dealt with independent directors quite extensively. The Standing Committee has spent significant time on issues relating to independent directors as evident from the report of the Committee. This shows the criticality of the effectiveness of independent directors in corporate governance. In the words of the Standing Committee “It is important [...]
Merger procedures to be simplified
Posted by khyati on September 30th, 2010
Merger procedures may soon become easier for India Inc. The Government is planning to come up with an ordinance to do away with the process of sanction by the Competition Commission of India (CCI) for small-ticket mergers and acquisitions. The ordinance will also ensure that the CCI takes a decision on an M&A application within [...]
New Companies bill to focus on Corporate Governance
Posted by khyati on September 28th, 2010
It was an unexpected move - the proposed amendments to the Companies Bill 2009 (Bill) on the requirement of the Parliamentary Standing Committee Report. The changes addresses issues on Corporate Governance – the objective being making the proposals mandatory by inclusion in the Bill itself, instead of reliance on the MCA Voluntary Guidelines envisaged initially. It [...]
End use of IPO funds should be monitored by MCA with SEBI
Posted by khyati on September 14th, 2010
The end use of money raised by companies through initial public offerings (IPOs) should be monitored by the Corporate Affairs Ministry in coordination with market regulator SEBI, a parliamentary panel has said. The Standing Committee on Finance, which scanned the provisions of the Companies Bill 2009, has suggested that the end use of IPO funds [...]
Govt’s CSR approach gives scope for corruption
Posted by khyati on September 14th, 2010
A seemingly philanthr-opic press release iss-ued by the Government of India’s Press Information Bureau on corporate social responsibility (CSR) exposes how the government has lost the plot. According to the press release, the Ministry of Corporate Affairs has “agreed” that the Companies Bill, 2009 should include mandatory provisions for every company having a networth of [...]
