significant beneficial ownership

Rule-making powers of MCA under Corporate Laws Amendments Bill, 2026: Is it a case of excessive delegation?

Summary : The Companies Act, 2013 which came into force from 1st April 2014 and replaced the 1956 Act reflected a fundamental shift in the legislative policy where substantial provisions of the Act were left to be prescribed by way of Rules notified by the Ministry of Corporate Affairs. This practice is contrary to settled constitutional provisions. The blog suggests certain precautions and guard rails to ensure that our company law becomes a facilitator for attracting foreign investment.

Continue Reading Rule-making powers of MCA under Corporate Laws Amendments Bill, 2026: Is it a case of excessive delegation?
A Fine Balance: A Perspective on recent RoC Orders

Introduction

India is in its “vocal for local” and “ease of doing business” (“EoDB”) era. Yet the slew of show cause notices and penalty orders the jurisdictional registrar of companies (“RoC”) has issued against Indian companies and its directors in the recent past[1] for alleged non-compliance of significant beneficial ownership (“SBO”) disclosures,[2] corporate social responsibility (“CSR”) contributions,[3] etc. under the Companies Act, 2013 (“Companies Act”), reflect the need for a well-balanced system.

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Ultimate parent’s professional CEO a Significant Beneficial Owner: Do companies have to re-evaluate their corporate approval process and reporting line structures?

Background

The genesis of the concept of ‘significant beneficial ownership’ under Indian law can be traced to the Financial Action Task Force (“FATF”) recommendations on issues pertaining to ‘transparency and beneficial ownership of legal persons and arrangements’. Set up in 1989, the FATF is a global inter-governmental body, now serving as a watchdog for global money laundering and terrorist financing.

Continue Reading Ultimate parent’s professional CEO a Significant Beneficial Owner: Do companies have to re-evaluate their corporate approval process and reporting line structures?