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Oppression and Mismanagement under Companies Act, 2013 A. INTRODUCTION: It is a known fact that the management of a company is completely based on the majority rule, however, at the same time the interests of the minority can’t be completely neglected. While discussing with regard to majority and minority, let us be clear that we […]

Enforceability of SHA over AOA A. INTRODUCTION: A Shareholder’s Agreement (“SHA”) is an agreement between the company and the shareholders which describes the rights and obligations of the shareholders of the company. It also describes as to how a company should be operated. It also provides for the details with respect to information of the […]

A. INTRODUCTION: Sports activities were invented by the man as a means to meet socially with others, to display skills and physical prowess and to entertain and has now become an integral part of human life since the time immemorial and necessary component of human development, good health, and the spirit of friendly competition. Sport […]

Liquidation Preference-Investment Agreements A. INTRODUCTION: A liquidation preference clause is usually incorporated in investment agreements with a view to protecting the investment made by the investors in companies, upon the occurrence of certain events. A liquidation preference, in general terms, means the order in which payments shall be made during the event of corporate liquidation. […]

Since the outbreak of the COVID-19 pandemic in India, there has been call-out in relation to whether the government of India would alter the operation of the Insolvency and Bankruptcy Code, 2016 (“IBC”). On March 24, 2020, the Union Finance Minister announced that the central government is considering the suspension of Sections 7, 9 and […]

A. INTRODUCTION: A franchise is a form of business in which a company which has developed a product or service (the franchisor) enters into a contractual relationship with other entities (franchisees) which usually operates under the franchisor’s trade name and guidance in exchange for a consideration. The concerned parties enter into a franchise agreement which […]

A. INTRODUCTION: A term sheet is an intention to complete a transaction. It is a non-binding document that lays down the basic terms and conditions of the proposed investment. It is usually entered into between parties before they enter into a definitive agreement which would govern the terms of their investment. The parties should ensure […]

A. INTRODUCTION: The term indemnity comes from the Latin term “indemnis” which means uninjured or suffering no damage or loss. The same can also be defined as a security or protection against a financial burden. An indemnity clause is one of the important clauses that is usually incorporated in all kinds of contracts. The reason […]

A. INTRODUCTION: COVID 19 has left all business to lose value artificially. Funding will be harder to get and down-rounds will be the new normal. Besides, valuations will be reset due to the increased macroeconomic risk. Promoters may lose control of the Company if the strategy of fundraising is not aligned with the market scenario. […]

India has been one of the most attractive and evolving investment destinations for private equity/venture capital funding for quite a long time and the growth of start-ups in India has been multifold in the last 10 years.  A lot of startups in India have entered in the industry either by charting into a completely new […]