Legal Updates

Liability of directors for debt of the company in India and the Czech Republic

  1. Introduction.

1.1          Under common law rules and equitable principles, director’s duties are largely derived from the law of agency and trusts. Under the law of agency, duties of skill, care and diligence are imposed on directors. On the other hand, law of trusts imposes fiduciary duties on directors. Accordingly, directors are the trustees of the company’s money and property, and also act as agents in the transaction which they enter into on behalf of the company. 

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The Supreme Court of Russia confirmed the possibility of non-recovery clauses in debts restructuring deals

The Judicial board on economic disputes of the Supreme Court delivered ruling on the case № 305-ЭС16-12298, which has resolved the question of the validity of an agreement on recovery refusal.

According to the facts of the case, the overdue debt restructuring agreement regarding of debt on a contractor agreement (“Agreement”) was sign between the parties of partially performed construction contract.

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Sudanese sanctions sailing into the sunset

Effective today, January 17, 2017, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced the conditional lifting of 20 years of U.S. sanctions against Sudan.1 This action is occurring in connection with an Executive Order issued by President Barack Obama on January 13, 2017, “Recognizing Positive Actions by the Government of Sudan and Providing for the Revocation of Certain Sudan-Related Sanctions,” as a result of what the administration has deemed “sustained progress” by the Government of Sudan on a variety of fronts, including: a marked reduction in offensive military activity; a pledge to maintain a cessation of hostilities in conflict areas in Sudan; steps toward improving humanitarian access throughout Sudan; and cooperation with the United States on counterterrorism and addressing regional conflicts.2

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Final rule allows more sharing of substance abuse treatment information

The Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services recently issued a final rule that will allow more flexibility for sharing patient records relating to substance use disorders.

The final rule amends Title 42 of the Code of Federal Regulations Part 2 (Part 2 Regulations), which governs the confidentiality of substance use disorder records and sets forth more stringent privacy protections than the HIPAA Privacy Rule. The Part 2 Regulations had not been substantively amended since 1987 and therefore did not reflect changes in health care such as the use of electronic health records and integrated care models involving the sharing of information to coordinate care. SAMHSA stated its goal with this final rule is to ensure patients with substance use disorders can benefit from new integrated health care models without fear of putting themselves at risk.

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Stakeholder Agendas in the Washington Transition: 5 Takeaways for Converting Ideas into Technically Effective Proposals

As the transition in Washington moves into high gear this month, it’s not just the new Administration and Congress that are putting in place plans for policy and legislation; stakeholders are busy creating agendas, too.

Many stakeholder agendas will seek to affect how government addresses such prominent health care issues as the Affordable Care Act, Medicare entitlements, fraud-and-abuse policies, FDA user fees, and drug pricing. There will be a myriad of stakeholder ideas, cutting a variety of directions, all framed with an eye to the new political terrain.

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50 Really Is the New 40

The Age Discrimination in Employment Act (“ADEA”) protects individuals who are at least 40 years of age from discrimination in the workplace. As such, the outcome of disparate-impact claims under the ADEA hinges, ordinarily, on whether or not an employer’s facially neutral-policy has a disparate impact on employees who are 40 years of age or older.  On January 10, 2017, the Third Circuit, in Karlo v. Pittsburgh Glass Works, LLC, 2017 BL 6064 (3d Cir. 2017), issued a precedential ruling, holding that disparate impact claims under the ADEA are not limited to comparisons of the impact an employer’s policy has on employees over 40 with the impact to employees under 40. Rather, the Third Circuit found that claims premised on an allegation that an employer’s policy impacted workers over the age of 50 are cognizable under the ADEA even when the policy had no disparate impact when employees in their forties were considered.

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Post Amendment Challenge and Enforcement of Arbitral Awards – Clarification by the Delhi High Court

Un-amended (Indian) Arbitration Act would continue to apply to challenge and enforcement proceedings concerning awards delivered in arbitrations commenced prior to the amendment. The party challenging such an arbitral award is therefore entitled to an automatic stay on its enforcement without deposit of any money in the court, in keeping with the position prior to the amendment.

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Will the new tax regime for the capital gains arising from sale of Russian property be actually postponed under the DTT with Cyprus?

On December 29, 2016 the Ministry of Finance of the Republic of Cyprus on its official website issued an announcement that an agreement has been reached between the Russian and Cypriot authorities for postponing the application of the Protocol of October 7, 2010 amending Article 13 of the Double Tax Treaty between the Government of the Russian Federation and the Government of the Republic of Cyprus “On Avoidance of Double Taxation with respect to taxes on income and capital” dated December 5, 1998 (hereinafter – Russia-Cyprus DTT)1. In the announcement, it is also indicated that an additional Protocol is being finalized, providing for the application of the revised provisions of Article 13 of the Russia-Cyprus DTT, until similar provisions are introduced in other bilateral agreements for the Avoidance of Double Taxation between the Russian Federation and other European countries.

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‘Toxic’ survivorship clauses: does your Will contain one?

 

Do you have a survivorship clause in your Will?  Chances are you do, if you leave assets to someone outright in your Will.  The mischief that these clauses are designed to avoid is this.  If A gives a gift to B in his Will and B dies the day after A, B’s estate will get the gift and it will be B’s Will that decides where A’s gift ends up.  However, in these circumstances, A may have wanted someone else to get the gift instead (A may not like B’s choice of heirs!).  Survivorship clauses are meant to solve this problem.  They also prevent the delay associated with the same money being administered through two separate estates and can reduce the total Inheritance Tax bill on both estates. 
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Despite Expedited Fifth Circuit Review, the District Court Case Challenging the DOL’s Proposed Overtime Regulations Will Proceed

The District Court for the Eastern District of Texas has denied the U.S. Department of Labor’s application to stay the case in which the district court enjoined the DOL’s new overtime regulations. The DOL had asked the court for a stay while the Fifth Circuit Court of Appeals considered an interlocutory appeal of the injunction. 

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