Photo of Ayush Lahoti

Associate in the General Corporate Practice at the Mumbai Office of Cyril Amarchand Mangaldas. Ayush can be reached at ayush.lahoti@cyrilshroff.com.

Removal of Managing Director: Legal Position and Practical Challenges

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A managing director (“MD”) is the principal executive officer of a company, serving on its Board in an executive capacity and is at the helm of its affairs. He is primarily responsible for managing the day-to-day affairs of the company under the overall ‘superintendence, control and direction’ of the Board.Continue Reading Removal of Managing Director: Legal Position and Practical Challenges

True and Fair View of Financial Statements: Who will finally bell the cat?

One of the most important communications by a company to its shareholders is its financial statements. It is a key document on which shareholders rely while making their decision on whether to stay invested in a company or not, as it highlights the financial health of the company. The regulators also understand the importance of financial statements, due to which the issuance of the same is heavily regulated and scrutinized. Section 129 of the Companies Act, 2013 (“CA 2013”), provides that the financial statements shall give a ‘true and fair view’ of the state of affairs of a company, while also complying with the accounting standards notified under Section 133 and be in the form as provided in Schedule III of CA 2013.Continue Reading True and Fair View of Financial Statements: Who will finally bell the cat?

Virtual General Meetings – Should it be legislated?

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Shareholder meetings form the bedrock of shareholder democracy in a corporate institution. It provides shareholders with the opportunity to participate in the affairs of a company, allowing them to vote in favour or against resolutions, and empowers them to question the policies and working of the management of a company. Majority and minority shareholders have the right to attend meetings, and in case of any difficulty, even designate a proxy to attend meetings on their behalf. Primarily, there are two types of shareholder meetings in India:Continue Reading Virtual General Meetings – Should it be legislated?

Share transfer restrictions under SHA: The need to revisit Section 58(2) of CA 2013

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A fundamental trait that distinguishes a private company from a public company is the concept of ‘transferability of shares,’ such that while the former may restrict transferability of shares, the shares of the latter, are generally considered to be ‘freely transferable’.Continue Reading Share transfer restrictions under SHA: The need to revisit Section 58(2) of CA 2013