Background:
An “independent director” (“ID”) is defined as “an independent director referred to in sub-section (6) of section 149”,[1] where Section 149(6) of the Companies Act, 2013 (“Act”), clarifies that an ID is “a director other than a managing director or a whole-time director or a nominee director” of the company. To be appointed as an ID, a person must fulfil an elaborate set of objective and subjective criteria separated across equity unlisted and listed companies.
Continue Reading Sufficiency of extant law to address governance concerns in relation to “independence” of an independent director in relation to subsequent directorships with the company
The year 2024 saw 105 public takeovers implemented through the tender offer route under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations). The number of takeovers were 24% higher than the number of takeovers in CY23 (85 in all). The aggregate transaction size (i.e. the aggregate size of the underlying negotiated deal and tender offer) of the takeovers announced in CY24 was INR 705.89 billion, i.e. 158% higher than that of the takeovers announced in CY23 (i.e. INR 274.27 billion). Primarily, the deal activity in CY24 was driven by domestic strategic acquirers. Foreigners executed 11 deals in this space, which was substantially higher than in CY23 (being 3).
Continue Reading Public Takeovers in India: Flashback 2024
All companies incorporated in India are mandated to constitute a board of directors,[1] to which companies appoint different kinds and classes of directors – managing director (“MD”), independent director (“ID”), non-executive and non-independent director (“NED”), whole time director (“WTD”) or executive director (“ED”). Given the pivotal role that a company’s directors play in the governance and operations of companies, the Companies Act, 2013 (“Act”), regulates different facets of a directorship from the appointment, duties, and responsibilities to the remuneration. This blog discusses the contours of remuneration limits to evaluate the length and breadth of permissible director remuneration. “Remuneration” has been defined as “any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961[2]”.[3]
Continue Reading Evaluating the Contours of Permissible Remuneration for directors of a company in India
Delay in adjudication is not new in India. Unnecessary delays through misuse of procedural complexities often tends to delay the dispensation of justice. Efficient adjudication and resolution of disputes are pivotal to any developed judicial system. These reinforce trust in the judicial set up of a country, thereby, facilitating effective commercial partnerships globally. In this backdrop, the Indian parliament enacted the Commercial Courts Act, 2015 (“Act”), with the aim to provide a procedural framework that leads to expeditious resolution of commercial disputes. Section 2(1)(c) of the Act provides for an exhaustive definition of “commercial disputes”, which includes, among other things, disputes arising out of intellectual property rights (“IPR”) relating to registered and unregistered trademarks, copyright, patent, design, domain names, geographical indications, and semiconductor-integrated circuits. Thus, IPR disputes are commercial disputes [1].
Continue Reading Scope of Interrogatories in Patent Infringement Suits: The Delhi High Court Reiterates the “Necessity Test”
In a recent judgement, the Delhi High Court, while hearing an appeal against an order of the Controller of Patents and Designs, which refused a patent grant, distinguished between a technical method and a business method while examining the technical contributions/ effects of an invention. In the impugned order, the Controller refused a patent application titled “Methods and Devices for Authentication of an Electronic Payment Card using Electronic Token” on the grounds that the claimed invention falls under Section 3(k) of the Patents Act (“Act”), categorising it as a business method and a computer programme, per se.
Continue Reading Inventions addressing transaction security patentable under Indian Patents Act
The year 2024 has seen significant advancements in advertising laws in India, with the introduction of various new guidelines aimed at regulating mis-advertising. This is understandable, considering that the Indian advertising market is projected to become a $19.2 billion industry by 2028.[1]
Continue Reading Legal Spotlight on Ads: Changing Flavor of Ad-Laws in India
The Calcutta High Court has established its Intellectual Property Rights Division (IPRD) and Intellectual Property Rights Appellate Division (IPRAD), marking an advancement in Intellectual Property law. This development, marked by a gazette notification dated September 20, 2024, which notified the Intellectual Property Rights Division Rules, 2023, adds Calcutta High Court to the list of those (Delhi, Madras and Himachal Pradesh) already engaged in implementing specialised regulations for Intellectual Property (IP) matters in India.
Continue Reading Calcutta Joins the Ranks: Addition of another IP Division in India’s Legal Landscape
In a recent judgement dated November 28, 2024, the Madras High Court while hearing an appeal under Section 117A of the Patents Act, 1970 (“Act”), quashed an impugned order that the Controller of Patents and Designs (“Controller”) had passed, on grounds of non-application of mind and violation of principles of natural justice.
Continue Reading Is it acceptable to file divisional application on the day of grant of parent application?
In this age of fast-paced routines riddled with stress and anxiety, the increasing and much-needed focus on health and lifestyle has led to the greater consumption of immunity-boosting and lifestyle-enhancing health products. These products are easily accessible and are not medicines or drugs that come with their fair share of risks, fueling a rising attraction towards nutraceutical products.
Continue Reading Cure or Supplement – Overlap Between Drugs and Nutraceuticals