The cardinal principle of Company law, as enshrined under Section 47 of the Companies Act, 2013 ( “the Act”)provides that every equity shareholder shall have the right to vote on every resolution placed before the company and his voting right on a poll shall be in proportion to his shares in the paid-up equity share capital of the company.
Continue Reading Vote-Pooling Arrangements between Shareholders – Deeper Reflections
Global M&A activity in the financial services sector appears to have slowed, despite a strong start in 2024, in line with general market trends. The Financial Institutions Group (“FIG”) is experiencing a unique phase of consolidation, with deal values increasing despite a significant decline in deal volume. This trend can be seen in a 5% YoY rise in deal value and a 30% drop in volume in the first half of 2024[1], suggesting a shift towards larger, strategic mergers.[2]
Continue Reading FIG Paper (No. 38): M&A in FIG Space: Recent Trends and Shifts
Member states of the United Nations approved the draft text of the United Nations Convention Against Cybercrime (‘Draft Convention’) by consensus, in August 2024, after five years of deliberations. It is the UN’s first consolidated attempt at regulating crimes on the internet. The move has attracted its fair share of controversy, with tech companies and human rights organisations protesting against the lack of safeguards.
Continue Reading Fighting Cybercrime: Global UN Convention on the Anvil
Historically, companies have provided employees with share-based incentives by way of employee stock options (“ESOPs”). However, with evolving corporate incentive structures, various new models have emerged, especially driven by start-ups. These incentives models include Stock Appreciation Rights (“SARs”), Restricted Stock Units (RSUs), Performance Stock Units (PSUs), Employee Share Purchase Schemes (“ESPS”), Phantom Stock Units (PSU), Save As You Earn Share Schemes (ShareSave), Non-qualified stock options (NSOs), Management Stock Options (MSOP), etc. Generally, employees look forward to an “exit event” to realise gains from these incentive structures, with an Initial Public Offering (“IPO”) being one of the most common “exit events”.
Continue Reading Proposal to make Companies with Outstanding Stock Appreciation Rights (SARs) eligible to undertake an IPO
A distinct subset of social media influencers called “finfluencers” (short for “financial influencers”) has emerged in the recent past. According to the Advertising Standards Council of India (“ASCI”), “finfluencers” are individuals who disseminate information and advice on various financial topics, ranging from securities investment to personal finance and insurance, via social and digital media platforms.
Continue Reading From Likes to Licenses: Regulating Finfluencers Amidst Stricter Norms
In a landmark decision that concluded a protracted legal saga, the Delhi High Court (“Court”) has recently resolved a 23-year dispute between two global fashion titans – Lacoste S.A. (“Plaintiff”) and Crocodile International Pte Ltd (“Defendant”). The Court issued a permanent injunction against the Hong Kong-based Crocodile International, prohibiting the use of the Crocodile trademark, which was found to infringe upon the iconic trademark of the French luxury sportswear brand, Lacoste.
Continue Reading Reptilian showdown in Court
The International Financial Services Centres Authority (“IFSC Authority”) released a consultation paper on August 5, 2024 (“Consultation Paper”), proposing a host of amendments to the IFSCA (Fund Management) Regulations, 2022 (“FM Regulations”).
Continue Reading IFSC Funds Regime 2.0: Sweeping Changes Proposed by IFSC Authority
A cardinal principle of company law, incorporated in Section 67 of the Companies Act, 2013 (“the Act”), prohibits the purchase by the Company of its own securities for the protection of creditors. Section 68 is an exception to this general rule; hence, it starts with a non obstante clause laying down several conditions and restrictions for the companies undertaking a buy-back of its shares, primarily with a view to protect the creditors.
Continue Reading Buy-back of shares: Will recent changes in the tax laws end the party?
This post analyses the scope of the regulatory framework governing employee benefits by equity listed companies in India and the applicability of the SEBI (Share-Based Employee Benefits and Sweat Equity) Regulations, 2021, to employee welfare trusts set up by promoters and share-linked but purely cash-based employee benefits.
Continue Reading Regulatory framework governing employee benefits by equity listed companies
In Mahesh Gupta v Assistant Controller of Patents and Designs, the Delhi High Court affirmed the refusal order issued by Assistant Controller of Patents and Designs (“Respondent”) against a patent application filed for “Portable Vehicle Management System”(“Subject Patent”). The Respondent refused the patent application on the grounds that it did not meet the inventive step requirement under Section 2(1)(ja) of the Indian Patent Act, 1970, and failed to qualify as an invention under Section 2(1)(j) of the Act.
Continue Reading Portable Vehicle Management System Denied Patent