In the dynamic landscape of corporate finance, companies often find themselves needing to raise additional capital whether it’s for expansion, investment, or other strategic purposes. When a company decides to increase its authorized capital, several steps come into play: Board Resolution and Shareholders’ Approval. The board of directors passes a resolution proposing the increase in authorized capital and thereafter Shareholders’ approval is sought. Submission of Form SH-7. The company files Form SH-7 with the ROC, providing details of the proposed increase along with relevant documents. Pay ..read more

The Insolvency and Bankruptcy Board of India (IBBI) introduced the IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2024 on 31st January, 2024. The amendment aims to make the process of voluntary liquidation of a company a smoother and a more transparent process. The amendment comprehensively addresses the procedural requirements for the pending legal proceedings disclosures, stakeholders meeting, progress reporting and distribution of various funds. The changes have been made to redress the past anomalies in VL timelines and Contributories meeting and reporting requirements in sy ..read more

The Voluntary Liquidation (VL) process in India was introduced to streamline business closure, aligning with the Government of India’s objective of facilitating ‘ease of doing business.’ Despite this, there are situations post-commencement of VL where factors such as regulatory amendments, new government policies, or changes in market dynamics necessitate a business to reconsider its decision to liquidate. However, the absence of direct provisions under the Insolvency and Bankruptcy Code and Companies Act raises a pivotal question: Can a company withdraw from VL after initiation, and if so, wh ..read more

With the burning issue of disqualification of Directors since last few years, the Ministry of Corporate Affairs has become proactive in its initiatives to identify Directors who have fallen under the ambit of non-compliances and have penalised them by disqualifying them or de-activating their DIN. These have affected not only the Directors but also the companies in which they hold such positions. Hence, a Company must be in capable hands who can uphold corporate governance and protect interests of stakeholders. In this article, we shall understand more about Disqualification of Directors, De-a ..read more

India has received a good flow of investments in the form of Foreign Direct Investments (FDI). While most businesses have succeeded in India but a fair number have also lost money and for this reason or as a part of their global strategy, a call for closure of business in India becomes an absolute necessity from global standpoint. Repatriation of funds for companies with global existence upon closure of business is always arduous or is so considered in context of India. The same also proves to be the major factor affecting the decision of a Company/its promoters to move ahead with the closing ..read more

Voluntary liquidation is a process by which a company, which is otherwise financially viable, chooses to wind up its operations and dissolve its legal existence. Under the Insolvency and Bankruptcy Code (IBC), there are several safeguards in place to protect the rights of stakeholders during the voluntary liquidation process. A fair understanding on safeguards will give confidence to the management or promoters before initiating voluntary liquidation and thereby entrusting all assets including bank balance, cash and other important and valuable assets to a Liquidator so appointed for voluntary ..read more

Overview In 2010, personal data belonging to millions of facebook users was collected without their consent by a British Consulting firm called “Cambridge Analytica”. It was revealed to have heavily influenced the US presidential elections in 2016 and Brexit in Britain. It gathered the attention of the whole world and is considered as one of the largest data breach in the history. As much as the internet has been a boon for people, it has also exposed them to newer risk and presented challenges for the authorities. To control the flow of the personal data and prevent it from falling into wrong ..read more

Overview Restricted Stock Units (RSU) are a form of equity compensation given to the employees / directors of the company in lieu of any cash bonus. This is given free of cost by the company but with some restrictions. The grant of RSU is “restricted” because it is subject to a vesting schedule, which is generally based on length of employment but in some cases, it is additionally linked to performance too. It may also be also be governed by other limitations such as transfers or sales that your company may impose by way of RSU grant Agreement. Many MNCs in India grant RSU of their holding com ..read more

The Overseas Investment framework before 22 Aug 2022 was not clear on some aspects and left room for multiple interpretations. With an aim to revamp the Overseas Investment framework, in attempt to simplify and liberalize the regulatory framework, the Government of India and RBI notified the Overseas Investment Rules and Regulations respectively. In this article, we shall restrict ourselves in examining the key changes brought by the Government of India vide its notification No. G.S.R 646(E), dated August 22, 2022 which deals with the Overseas Investment Rules. The Rules governing the investme ..read more

It is a general practice by foreign entities to compensate the employees / directors of their India entity (subsidiary / office) by way of Employee Stock Ownership Plan (ESOP). Prior to August 2022, the employees were permitted to acquire shares under ESOP and there was a reporting requirement of submission of Form ESOP by the Indian company (employer) to the RBI. In the month of August 2022, new rules and regulations were notified which changed the classification of such investments and associated reporting requirements by the Indian entity. Now acquisition of shares through ESOP will be clas ..read more