According to India legal news reports in August 2010, the government of India is ready to make corporate donations to political parties more transparent. It is a known fact that political parties in India receive huge amounts as donations from corporate houses. However, funding political parties out of a company’s profit have been often subjected to criticism. This issue comes under greater scrutiny during the time of elections because prominent political parties in India overspend and violate the spending limits set by the Election Commission of India. Also, very little is done by these parties to improve or optimize the political funds they get from corporate houses.
Salman Khurshid, the Minister of State for Corporate Affairs, stated that the Ministry is set to recommend the addition of certain provisions pertaining to the disclosure of such details given through corporate donations through the new Companies Bill.
Generally, a person who is unable to meet his debts or obligations is known as insolvent. Insolvency pertaining to a company refers to a company’s inability to pay off its debts. Further, when one of the creditors files a lawsuit in court and stops the individual actions by creditors, this is known as insolvency proceedings. In a petition involving insolvency, it is important to mention all the acts of insolvency, commissioned by the borrower. Until the act of insolvency is clearly mentioned in the petition, no order of adjudication can be passed.
The latest buzz in the Indian business scenario pertains to mergers. Some of the most talked about terms in corporate world today are takeovers, open offers and acquisitions. However, before mergers can be successfully executed, companies have to fulfill various legal and financial formalities, in consonance with Indian law.
Foreign direct investment is governed by company law in India. At a basic level, it comes into effect when a company from one country makes a physical and monetary investment into building a factory or office in another country. The investment involves many other factors as well.
Typically, a joint venture is a contractual agreement, between two or more parties, for a common commercial purpose. The concerned parties agree to share markets, profits, intellectual property, assets and knowledge for the new business venture. Further, the concerned parties own the shares of the joint venture company in prior agreed proportion. Formations of joint ventures in India are governed by company law.
As professionals, we are aware about the various schemes introduced in the past. These company laws include the simplified exit scheme 2003 and simplified exit scheme 2005, relating to striking off the names of the company from the Register of Companies as defunct companies. Despite those schemes, many companies did not show any interest in filing their due documents promptly with the Registrar of Companies as no business operations / activities were/are carried on by them. For those companies, it is a golden opportunity for getting their names strike off from the Register of Companies at no cost except minimal documentation expenses.
As per section 581-A (l), of the Companies Act, 1956, a company is known as a Producer Company, if it is registered under the Companies Act, 1956, as a Producer Company.
Further the Act, provides that a corporation is referred as Producer Company only, if it has the objects as provided under the section 581-B (1), of the Act.
Indian law stipulates that a trademark is an exclusive and unique sign or symbol owned by a person, corporation or legal entity, which enables a consumer to identify and associate with their products or services. A trademark can be a visual symbol, word, logo, phrase, name or image. Think about some popular trademarks that pop up in your mind even as you are reading this– McDonalds, Pepsi, Adidas, Reebok, just to mention a few.
The Depositaries Bill, 1996, got the approval of both the Houses of Parliament and received the assent of President of India on 12th August, 1996. The Depositaries Act, 1996, extends to the whole of India. The Act aims to regulate the depositaries in securities and related matters.
A group of individuals comprising of a minimum 10 or more members may form a Producer Company under the Companies Act, 1956. Based on existing company laws, a ‘Producer’ is a person involved in any activity related to any primary produce. The board of director of a company is an authorized body comprising of appointed members, who jointly manage the affairs of a company. The Board enjoys many powers, duties and obligations pertaining to the matters of the company, such as taking decisions in respect of loans, investments and bank transactions.