Asia Pacific

Can Virtual Currency Platforms Operate in India – Supreme Court’s Recent Judgement

The crypto-currency platforms have been subjected to various governmental actions in the past without the virtual currencies being banned in India. In a huge relief to the crypto-currency exchanges and platforms, the Supreme Court of India in its recent judgment in the matter of Internet and Mobile Association of India vs. Reserve Bank of India [Writ Petition (Civil) No. 528 of 2018], set aside the Reserve Bank of India’s (RBI) circular restricting the dealing in virtual currencies and/or operating the virtual currency exchange in India.

Background:

RBI issued a ‘Statement on Developmental and Regulatory Policies’ on April 5, 2018 (RBI Statement), which inter alia directed the entities regulated by the RBI (a) not to deal with or provide services to any individual or business entities dealing with or settling virtual currencies; and (b) to exit the relationship, in case such relationship exists, with such individuals/business entities, dealing with or settling virtual currencies.

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Parliament passes the Insolvency and Bankruptcy Code (Amendment) Bill, 2020

On Thursday, both houses of Parliament passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2020 (“Bill”) thereby repealing the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 (“Ordinance”). All the amendments made prior in the Ordinance have been captured verbatim by the Bill. The Bill will now require the President’s assent to become a law in the form of the Insolvency and Bankruptcy Code (Amendment) Act, 2020 (“Act”).

Some of the salient features of the Bill are enumerated herein below:

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UNDERTAKING OF CHARITABLE ACTIVITIES NOT MANDATORY FOR NEW TRUST PRIOR TO SEEKING TAX EXEMPTION UNDER THE INCOME TAX ACT,1961

Exemption from taxation on income generated by charitable institutions is a fundamental draw for many institutions to be incorporated as a charitable institution. Sections 11 to 13 of the Income Tax Act, 1961 (“IT Act”) govern the exclusion of income derived by a charitable institution from property held under trust for charitable or religious purposes to the extent such purposes are applied in India. Similarly, Section 80G of the IT Act allows for deduction of donations made by a person to a charitable institution from the computation of the total income of such person. To claim exemption of income under Sections 11 to 13 of the IT Act, the charitable institution needs to be registered under Section 12AA1 of the IT Act. Additionally, the charitable institution also needs to be registered under Section 80G of the IT Act for its donors to avail deductions.

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LIQUIDATED DAMAGES CANNOT TRIGGER INSOLVENCY PROCEEDINGS

JudgmentGujarat Urja Vikas Nigam Limited vs Nitash Co-generation Private Limited

Forum: National Company Law Tribunal, Mumbai Bench (“NCLT”).

Act/Law: The Insolvency and Bankruptcy Code, 2016 (“Code”).

Ratio: Claim for “Liquidated Damages” cannot trigger insolvency proceedings, unless adjudicated upon by a court of law. Proceedings under the Code are not for ascertaining or crystallizing the quantum of damages.

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Llinks Client Alert–Cybersecurity, Data & Privacy (January 2020)

I. Highlights

Six departments revised the Interim Measures for the Administration of Online Ride-hailing Services.

Website of China Administrative Penalty Documents Online was launched. Read more.

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Llinks Client Alert – Antitrust

I. Highlights

The State Administration for Market Regulation announces that the antitrust review of concentration of undertakings will be conducted online due to the coronavirus outbreak.

The State Administration for Market Regulation issues an administrative penalty decision concerning monopoly agreement…read more

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On Enterprises’ Obligations of Reporting Employees’ Information during the Epidemic

After the outbreak of Novel Coronavirus Pneumonia (COVID-19), government
departments, enterprises and institutions across the country have been
actively collecting information on the epidemic situation with a view to
maintaining the normal production order and economic order. On February 4,
the Office of the Central Cyberspace Affairs Commission (“CAC”) issued the
Notice on Protecting Personal Information and Using Big Data to Support
Joint Prevention and Control (hereinafter referred to as the “Notice”),
which is intended to urge all local government departments and all
institutions and entities to collect and report personal information related
to the joint prevention and control of the epidemic situation in accordance
with the law, to safeguard personal information security, and to protect
personal privacy from any violation. In this special period, enterprises
must not only make an orderly labor arrangement despite the impact by the
epidemic, cooperate with the information reporting tasks, but also pay
attention to employees’ personal information and privacy protection. This
article aims to clarify the legal basis for collecting and reporting
employees’ personal information to government agencies during this epidemic
situation, and to further provide enterprises with some compliance tips on
how to properly respond to requests for employees’ information from
government departments and secure employees’ personal information and
privacy at the same time. Read more…

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A Prospect on Protection of Innovative Drugs Post US-China Trade Agreement

The United of States and the People’s Republic of China reached the
milestone Economic and Trade Agreement (the “Agreement”) on 15 January
2020. Chapter 1 on protections of intellectual property rights forms an
important part of the Agreement and the terms on protections on innovative
drugs constitute an important part of Chapter 1. When the Agreement is fully
implemented, the landscape of intellectual property protections for
innovative drugs will change significantly and innovative pharmaceutical
companies’ interest will be better protected. Read more…

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The Ministry of Corporate Affairs simplifies the process for Incorporation of Companies

The Ministry of Corporate Affairs (“MCA”) has recently notified the proposed deployment of a new web form “SPICe+” for incorporation of companies. The web form has been issued as part of the Government’s Ease of Doing Business initiative and has replaced the existing SPICe form.
The major changes introduced in the company incorporation process are:
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Chinese Legal and Regulatory Compliance Issues In relation to the Novel Coronavirus Outbreak

Outline:

  • Latest Local Policies on Postponing Work Resumption and Suggestions on Flexible
    Work Arrangements
  • Rent Relief or Termination of the Lease Agreement due to the Epidemic Outbreak?
  • Ten Preferential Policies – Suzhou, Jiangsu Province
  • Impacts of the WHO Declaration – Public Health Emergency of International Concern
  • General Legal Issues in relation to the Epidemic Outbreak
  • Employer Response
  • Toolkit of Relevant Notification & Worksheet

Read more…

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