companies act 2013
TRANSCRIPT
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Companies Act 2013An Industry Perspective
Jasmeet WadehraGeneral Counsel – IndiaInternational Paper
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What Industry Wants?
•Simplicity of Regulation•Clarity & Un-ambiguity•Cost of Compliance •Freedom to do Business•Institutional Trust•Keep up with the Times•Flexibility of Change
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Merges & Amalgamation
•Mergers of ‘small companies’ & holding-wholly owned subsidiary company simplified
•Cross border mergers permitted
•Minority share acquisition (squeeze outs ?!)
•Listed company merger into unlisted company
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Related Party Transactions
•Definition of Related Party expanded
•Shareholders ambit vs. government control
•Arms’ length pricing imported from Tax laws
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Concept of Listed private companies
•Bond market impact
•Additional compliance burden
•Exposure of financials
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Institutional inter-play
•Insider Trading•Dealing in securities•Issue of securities / payment of dividend•SFIO
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Frauds
•Auditor’s duties to report•Class actions & damages claims (against
auditors, audit partners, experts, advisors, company, directors, etc.)
•SFIO
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Others
•Asset/business disposition onerous•One person company / private company–
specific exemptions missing•Subsidiary company prohibition of holding
shares – avoids speculation but onerous for treasury operations
•KMPs given open authority to sign and authenticate documents – controls !
•Disposal by NCLT within 3 months
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Thank you