This post analyses the permissibility of and key legal considerations for share-based benefits/ incentives, like ESOPs, RSUs, SARs, etc., that foreign companies offer to the employees of their Indian group companies.
Continue Reading Employee Share-based Incentives by foreign companies for employees of group companies in India: Should it be an ESOP, RSU, ESPS, SAR or Phantom Stock?
In the intricate ecosystem of global healthcare, the trust between doctors and patients forms the bedrock of ethical practice. A growing number of Indian healthcare service providers are integrating digital health technologies into their business development initiatives and operational framework, leading to an unsettling trend. Several such healthcare providers now deploy offline and online resources to set up and maintain incentive-driven patient referral networks through collaboration and partnership arrangements with healthcare institutions and practicing doctors. These arrangements are designed to attract new patients through referrals from doctors, pharmacists, and healthcare workers, who are then adequately compensated with merchandise, coupons, gifts, travel facilities and grants. This intersection of medicine and commerce raises profound ethical and legal questions, challenging the integrity of the medical profession and the sanctity of patient care.
Continue Reading Rx for Referrals: Navigating the Ethical Considerations in India’s Medical Landscape
In terms of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Takeover Regulations”), acquiring control and/or shares/voting rights of a listed company beyond the specified quantitative thresholds (i.e. initial acquisition of 25% or more of the voting rights; or subsequent acquisition by a person holding at least 25%, of more than the creeping acquisition limit of 5% voting rights in a financial year) can trigger an obligation to make an open offer to its shareholders (“Open Offer”).
Continue Reading Case-Specific Exemptions under the Takeover Regulations: Key Takeaways from SEBI’s Orders
Intellectual Property Rights (IPR) have undergone significant evolution in the recent past, and the increasing number of filings for different types of IP rights across the world show the increasing commitment of countries to foster innovation, creativity, and their desire to sustain it. In today’s rapidly evolving landscape of innovation and technology, securing intellectual property rights through patents has become paramount for businesses and inventors. However, navigating the complex realm of patent law demands a thorough understanding of existing inventions and their legal implications.
Continue Reading Decoding Patent Searches: A brief on the types and strategies
Background
The Supreme Court (“SC”) issued a notice[i] on a special leave petition filed by the Competition Commission of India (“CCI”) on March 1, 2024, against a Division Bench order of the Delhi High Court (“Delhi HC”) passed on July 13, 2023. The impugned order dealt with four appeals and a writ petition filed by Telefonaktiebolaget LM Ericsson (“Ericsson”), CCI, and Monsanto Holdings (P.) Ltd. (“Monsanto”) against previous Delhi HC judgements in Ericsson AB v. CCI (March 30, 2016)[ii], Ericsson AB v. CCI (December 14, 2015)[iii], Monsanto Holdings (P) Ltd. v. CCI (May 20, 2020)[iv], and letters issued by the CCI against Ericsson on July 16, 2015, and August 8, 2015.
Continue Reading Patents Act, 1970 or Competition Act, 2002: SC to decide applicability on actions of patentee
In part II of our series on establishing global capability centres (“GCCs”) in India,[1] we discuss the key issues that foreign companies face when strategising the structure and model for setting-up a GCC.
Continue Reading Strategic structuring and modelling Global Capability Centres (GCCs) in India: How to set up
As the financial year 2023-24 draws to a close in a few days, it is the right time to reflect on the functions and responsibilities of the Audit Committee as well as address some “inconvenient” questions concerning their effectiveness vis-a-vis various listed and unlisted companies.
Continue Reading Role of the Audit Committee – Need for a Deeper Reflection
Companies, as the business grows, operate through their subsidiaries for various reasons such as flexibility in operation of different units, expansion in different geographies, etc. While subsidiary is an entity over which the wholly owned subsidiary has control, the Companies Act, 2013 (“CA 2013”) recognises subsidiary companies as a separate legal entity.
Continue Reading Holding-Subsidiary Relationship – Legal & Regulatory Architecture
The practice of experimenting on animals has long been a focal point of ethical and regulatory debates. Juxtaposed against the concerns for animal welfare, this complex landscape tries to strike a balance between the pursuit of scientific progress to advance human knowledge and safeguard the rights and well-being of fellow planet inhabitants. Notwithstanding the surge in global commitment to reduce the number of animals used in experimentation and research activities, reports indicate that more than 100 million animals are used globally for experimentation on an annual basis. Further, trend suggests that, currently, there is little to no decline in worldwide use of animals in research and lab work.
Continue Reading Pre-Clinical Testing on Claws and Paws: Decoding the Permissibility of Animal Experimentation
The Companies Act in India and jurisdictions all over the world have statutorily recognised subsidiaries as a separate legal entity. Section 2(87)[1] of the Companies Act, 2013 (“CA 2013”), defines “subsidiary company” or “subsidiary” as a company in which the holding company controls the composition of the Board of Directors; or exercises or controls more than one-half of the total voting power either on its own or together with one or more of its subsidiary companies.
Continue Reading When is a Holding Company liable for the acts and omissions of its Subsidiary? A Jurisprudential Analysis