Corporate Law

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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Force Majeure Event – Injunction Against Invocation of a Bank Guarantee During Lockdown

Judgment: M/s Halliburton Offshore Services Inc. Vs. Vedanta Limited & Anr. [O.M.P. (I) (COMM) 88/2020 & I.A. 3697/2020]

Forum: Hon’ble High Court of Delhi (“Court”)

Judgment delivered on: April 20, 2020

Act/Law: Arbitration and Conciliation Act, 1996 (“Act”).

Ratio: Special equities in order to prevent irretrievable harm or injustice is a ground for injuncting invocation/encashment of bank guarantee.

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Postponement of Business Declarations Until September 2020

By Sharon G. Druker, from our Business Law Practice Group

April 30, 2020 — Federal corporations, non-profit organizations and cooperatives generally must file their annual returns and pay the annual fees within 60 days of the anniversary date of their creation. However, Corporations Canada has recently announced that all such entities whose anniversary date falls between February 1 and June 1, 2020 now have until September 30, 2020 to do so. Corporations created under a special act of Parliament and which would otherwise have to file between April 1 and June 1, 2020 now also have until September 30, 2020 to do so.

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Companies May Hold Remote Meetings, Despite Governing Documents

By Sharon G. Druker, from our Business Law Practice Group

April 29, 2020 — By press release dated April 27, 2020, the Minister of Justice and Attorney General of Québec announced that for the duration of the COVID-19 public health emergency, legal persons who must hold meetings of their boards of directors, shareholders (in the case of a corporation) and members (in the case of non-profit organizations) can do so remotely, even if their governing documents require in-person attendance or actually prohibit participation in meetings by technological means. This includes corporations, non-profit legal persons governed by Part III of the Companies Act (Quebec), cooperatives (for both annual and special meetings), partnerships, syndicates of co-owners, professional orders, the council of commissioners of a school board and the governing board of an elementary or high school.

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Congress passes $484B coronavirus relief bill

Congress has passed the Paycheck Protection Program and Health Care Enhancement Act, increasing the total amount available under the Paycheck Protection Program by $310 billion. Of that sum, $60 billion is set aside for loans to be made through small and very small community banks and credit unions. The bill also includes an increase of $10 billion for EIDL grants, $75 billion to help overwhelmed providers and hospitals, and $25 billion for coronavirus research.
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Paycheck Protection Program Updates FAQs

The Coronavirus Aid, Relief and Economic Security Act (the CARES Act) includes the Paycheck Protection Program, which provides economic relief for small businesses. Davis & Gilbert attorneys Justin Pollak, Lara Cohen and Julie Makowski address what the new program covers and how small businesses can participate. These FAQs provide up-to-date information as of April 28, 2020 on the Paycheck Protection Program, which supplements the information included in our previous alert “Coronavirus Aid, Relief and Economic Security Act: What You Need to Know,” and our related “CARES Act Memorandum.” Read more…

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Business Interruption & COVID-19: What risks are covered?

Considering widespread business closures, Michael Murphy takes an in-depth look at the impact of COVID-19 on business interruption insurance with a focus upon the following specific issues:

  1. Why this is such a key issue for insurers and policyholders?
  2. Are you entitled to claim for your business interruption losses?
  3. How do insurers reach their determinations on such claims?
  4. What do you do if you disagree with the insurer’s determination?
  5. Can insurers be forced to pay out for these business interruption losses?
  6. What is going to happen on these issues going forward?
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Paycheck Protection Program and Health Care Enhancement Act to Appropriate Additional Funds for Small Business Loans

President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (PPPHCE Act) into law on April 24, 2020 to infuse approximately an additional $484 billion of stimulus funds into the economy in response to the coronavirus pandemic (COVID-19). Read more…

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