Corporate Law

Extension for holding AGM for FY 2020

The Ministry of Corporate Affairs (MCA) has given directions to extend the due date for holding Annual General Meetings for the financial year ending on March 31, 2020, taking into account the difficulties faced due to Covid-19 pandemic situation in the country.

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NCOVID-19 & FORCE MAJEURE

The pandemic situation related to the NCovid-19 virus spread, as it has been declared by the World Health Organization, and the effects of the measures introduced, both at a national and international level, are raising serious challenges to companies and families, which could jeopardize the stability of business and, consequently, of the worldwide economy.

From a legal standpoint, it is necessary to assess if the above-mentioned outbreak constitutes, or not, a force majeure situation, especially regarding its effects on the fulfilment of contracts. Read more…

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Rewards and Risks for Distressed Strategic Middle Market M&A

During the bull market that followed the recovery from the 2008 financial crisis, we saw robust and sustained merger and acquisition (M&A) activity. Acquisitive companies pursued target businesses with strong balance sheets and bright growth prospects. Acquirers and targets became accustomed to broad rules of the road that guided M&A valuation, structure and process and informed transaction risk and reward. The coronavirus pandemic and its resulting economic dislocation will upend many of those rules. Read more…

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Can Every Breach or Non-Performance be Justified or Excused on Invocation of COVID-19 as a Force Majeure: Delhi High Court Verdict

COVID-19 has caused tremendous economic loss, delays in project completion, missing of targets and milestones and potential breaches and disputes among contracting parties. Recently, in the matter of Halliburton Offshore Services Inc. vs Vedanta Limited & Anr. [O.M.P (I) (COMM.) No. 88/2020 & I.As. 3696-3697/2020], a petition seeking inter alia restrain on invocation of the bank guarantees issued in favour of the Respondent, the Hon’ble High Court of Delhi considered the issue of invocation of COVID-19 as a Force Majeure condition and held that “Every breach or non-performance cannot be justified or excused merely on the invocation of COVID-19 as a Force Majeure condition”. The Court further observed that it would have to take into consideration various factors to assess whether a party is genuinely prevented or justified in its non-performance due to the epidemic/pandemic.

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Seeking Procedural Clarity with the Time Limits and Other Periods Act (COVID-19)

By Sydney Warshaw, from our Business Law Practice Group

June 4, 2020 — The Federal Department of Justice recently published the Time Limits and Other Periods Act (COVID-19) as a response to ongoing delays and complications in the wake of the COVID pandemic.

This draft legislation provides for automatic extensions to several federal deadlines. It also gives authorized ministers the powers to extend or suspend the time limits or periods in various federal acts and regulations.

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Key takeaways from the Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following changes in the various other sectors to promote the motto of Self Reliant India and boost the economic status of the Country.

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General considerations regarding Coronavirus (COVID-19) consequences on contracts under Mexican legislation.

Due to the crisis caused by COVID-19 and the different decrees and resolutions issued in connection thereto by the Mexican Federal Government, many doubts and questions have emerged regarding the effects this will have on contractual relationships among individuals.

Listed below are some relevant legal considerations regarding the enforceability of contractual obligations:

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Amendments under Companies Act in Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following amendments in the Companies Act 2013, to promote the motto of Self Reliant India and boost the economic status of the Country.

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Federal Reserve announces creation of Main Street Lending Program

The Federal Reserve has announced the creation of the Main Street Lending Program. The Program is intended to assist smaller and medium-sized businesses that were sound financially before the COVID-19 pandemic and that need financing alternatives. Businesses that were unable to access Payroll Protection Program (PPP) funding or require additional funding after receiving a PPP loan may also access the Program.
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Gradual Resumption of Business Activity in Quebec

By Nicolas Pfister, from our Insurance Law Practice Group

A long-awaited moment has arrived, with the resumption of economic activity in certain sectors of activity considered non-essential. The Quebec Government’s policy is one of caution, and it is proposing a gradual opening plan that will be spread out over the summer. We wish to mention at the outset that this plan is subject to revision if the sanitary situation in Quebec is no longer under control.

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