Lease and Rentals: Are these Operational debts under the IBC?

Introduction “Lease rentals arising out of the use and occupation of a cold storage unit which is for a Commercial Purpose is an ‘Operational Debt’ as envisaged under Section 5 (21) of the Code.”[1] This was the National Company Law Appellate Tribunal’s (‘NCLAT’) holding in the case of Anup Sushil Dubey v. National Agricultural Co-operative Marketing Federation […]

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Legality of Cross Border Demergers in India

A demerger is a reorganisation plan in which a single company is separated into two or more organisations, each of which is legally registered as a separate corporate entity and operates independently. The term demerger is not defined under the Companies Act of 1956 or the Companies Act of 2013, however Section 2(19AA) of the […]

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Bonus Issue and Share Split Under Companies Act, 2013

INTRODUCTION Bonus issue and split of shares are ways of rewarding the shareholders. Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are the company’s accumulated earnings which are not given out in the form of dividends but are converted […]

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Committees Under Companies Act, 2013 And Securities Exchange Board Of India (Listing Obligations And Disclosure Requirement) Regulations, 2015

INTRODUCTION: A board committee consists of board members for supporting the board’s work. Committees are formed to perform specific expertise work. Members of the committee have expertise in specific field. Committees improve the efficiency and effectiveness of Board in areas where more focused, specialized and technical discussions are required. Committee function in accordance with the […]

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Importance of a Non-Disclosure Agreement

Often, the biggest concern of a business entity is  protecting its confidential information that keeps its business unique and competitive. Whether it be protecting the intellectual property at its early stages, or just wanting to keep early commercial discussions private, or ensuring that information may not be disclosed by the employees of the organisation, the solution […]

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Founders’ Agreement and its Importance

In today’s world, it is quite frequent to observe likeminded individuals engaging into partnerships in every spectrum of the business sector. Gradually, most of these partnership converts into a company with an aim to diversify and in order to expand the size of the business. Alternatively, many individuals also prefer to directly incorporate a startup […]

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Legal Recourse For Defamation

A. INTRODUCTION The essential concept of defamation law is that a person’s reputation, the respect in which he is regarded by society, the credibility and confidence it places in his knowledge, dignity, and ethics, all of these are important assets for him, and they ought to be protected by the law. The pursuit of reputation […]

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Compounding of offences under the Companies Act, 2013

Introduction: An “offence” shall mean any act or omission made punishable by any law for the time being in force. The “compounding” refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. A compounding of offense consists of three basic elements: (1) knowledge of the offence; (2) the agreement not to […]

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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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