Procedure for Conversion of Private Company to Public Company

1. INTRODUCTION: Pursuant to provisions of Companies Act, 2013 (“Act”), a private company by its articles restricts the right to transfer its shares and limits the number of its members to two hundred. On the other hand, a public company has no such restrictions. A Company of any class already registered under the Act can […]

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Borrowings by Private Companies Under Companies Act, 2013

1.INTRODUCTION: Every company needs additional capital for its business from time to time. The company can meet such requirement of capital, to an extent, by the issue of share, and at times has to raise loans. Borrowing can be defined as a means through which companies arrange financial funds through external sources like bank loans, […]

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Startup India Registration / Recognition

Startup India was launched in January, 2016 as a clarion call to the innovators, entrepreneurs and thinkers of the nation to lead from front in driving India sustainable economic growth and create large scale employment opportunities. Startup India laid the foundation for building a self reliant India and harness the potential of a nation bestowed […]

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Analysis of the supreme court ruling in the TATA-MISTRY case

In January, 2020, Tata Sons and Ratan Tata moved to Supreme Court and challenged the decision given by the NCLAT before the Supreme Court. The Supreme Court on March 26, 2021, pronounced its judgement. The judgement was pronounced by a bench of Supreme Court headed by Chief Justice S.A Bobde and comprising Justice V. Ramasubramanian […]

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Work From Home: Understanding The Gaps In India’s Regulatory Framework

Every economic shock leaves behind a legacy, and the Covid outbreak is not an exception to it. The Covid outbreak has provided the entire world with an opportunity to experiment globally with the concept of remote working and digital transformation. Traditional work-operations are slowly being replaced with automation and digitalization. Further, information and communication technologies […]

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Startups – Things to consider and common mistakes

In this article, we have tried to break down things to consider and common mistakes which startups generally tend to make and should avoid: Making a Deal with the Co-Founder through Founders’ Agreement: A founders’ agreement  is a contract that is executed between all the co-founders of a startup / company. The Agreement sets forth […]

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Flipping of Structures – Legal Framework

As Companies grow and have global footprints, we have seen founders wanting to flip the structures and have parent companies in countries like the United State of America, Singapore, Maturities, etc. Flipping of the structure generally means establishing the holding company outside India. Generally, flipping of structures is done for easier access to global investors, […]

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Business / Undertaking Hive off – Slump Sale Vs Demerger

Slump Sale: Section 2 (42C) of the Income Tax Act, 1961 (“IT Act”) defines slump sale as the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sale. Therefore, slump sale would mean the transfer […]

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Private Equity/ Investors Clash with Promoters- Mitigation Plan

A.    BACKGROUND: Historically spate of cases has involved marquee PE names — from General Atlantic to TPG to Premji Invest. In this article, I have tried to summarize my observations based on my experience on why Private equity (“PE”) /venture capital (“VC”) investors end up fighting with the promoters and vice versa which generally cost […]

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Note on New Wage Code

The government passed Wages Code Bill in the parliament last year, likely to come into effect shortly (Not from 1st April, 2021). Following are few of the critical changes the law will bring into effect: The basic salary should be 50 per cent or more of the total salary. In this case, the structure of […]

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