November 25, 2019
The Ministry of Corporate Affairs (“MCA”) on 18th November 2019 vide notification of the Companies (Meeting of Board and its Powers) Second Amendment Rules, 2019 (“Second Amendment Rules, 2019”) issued further amendment to rule 15 of the Companies (Meeting of Board and its Powers) Rules, 2014.
The MCA vide Second Amendment Rules, 2019 seeks to revise the threshold limits pertaining to any contract or arrangement with a related party for transaction value beyond which the company would require approval of shareholders by way of a resolution [as provided under the first proviso to sub-section (1) of section 188 of the Companies Act, 2013].
The revised threshold limits prescribed in the Second Amendment Rules, 2019 are as follows:-
- For the sale, purchase or supply of any goods or materials, directly or through appointment of agent, the revised threshold limit provides ten percent or more of the turnover of the company as against the earlier threshold limit of amounting to ten percent or more of the turnover of the company or rupees one hundred crore, whichever is lower [Amendment in Rule 15(3)(a)(i)];
- For selling or otherwise disposing of or buying property of any kind, directly or through appointment of agent, the revised threshold limit provides ten percent or more of the net worth of the company as against the earlier threshold limit of amounting to ten percent or more of net worth of the company or rupees one hundred crore, whichever is lower [Amendment in Rule 15(3)(a)(ii)];
- For leasing of property of any kind, the revised threshold limit provides ten percent or more of the turnover of the company as against the earlier threshold limit of amounting to ten percent or more of the net worth of the company or ten percent or more of turnover of the company or rupees one hundred crore, whichever is lower [Amendment in Rule 15(3)(a)(iii)];
- For availing or rendering of any services, directly or through appointment of agent, the revised threshold limit provides ten percent or more of the turnover of the company as against the earlier threshold limit of amounting to ten percent or more of turnover of the company or rupees fifty crores, whichever is lower [Amendment in Rule 15(3)(a)(iv)].
November 21, 2019
Anti-corruption enforcement has never been more aggressive or coordinated. In light of this current situation, multinational corporations have continued to emphasize investment in strong anti-corruption compliance programs. In the Asia-Pacific region, jurisdictions have taken strong steps to reinforce their anti-corruption legislative framework by requiring organizations and businesses to comply with internal policies and local regulations.
To address this issue, Duxes will host the 8th Anti-Corruption Compliance Asia Pacific Summit 2020 (ACAP) from March 26-27 in Singapore. The event is designed to help companies adapt to the new anti-corruption environment. The two-day summit will gather government officials and industry leaders to discuss important developments, including anti-corruption enforcement trends, third-party due diligence, and risk management, as well as best practices for compliance, internal communication and internal audits.
November 19, 2019
The 13th Anti-Corruption Compliance in China Summit 2019 (ACCN), hosted by Duxes, took place at the Crowne Plaza Chaoyang U-Town in Beijing from November 13-14. ACCN 2019 attracted business leaders and legal experts from around the country to exchange ideas on the latest approaches, best practices and interpretation of staying on the correct side of the law when setting up a compliancy scheme or running a business in the country.
ACCN 2019 included speakers from the highest-profile compliancy analysts and academic institutions, including policymakers and representatives from the State Administration for Market Supervision, TRACE International, Ernst & Young, China University of Political Science and Law, Covington & Burling LLP, the Center for Business Ethics & Compliance and the United Nations Development Programme (UNDP).
October 30, 2019
In a recent judgement delivered by the Delhi High Court vide its order dated October 16, 2019 in the case of Intellectual Property Attorneys Association vs The Controller General of Patents, Designs & Trade Marks & Anr. [W.P.(C) 3851/2019], the High Court has observed and clarified that the Registrar of Trade Marks (“Registrar”) is duty bound to send a copy of the order containing the grounds for conditional acceptance or refusal of the application for registration of trade marks under the Trade Marks Act, 1999 (“Act”).
October 15, 2019
Multinational companies such as Google, Facebook, Airbnb etc., engaged in providing digital services in different countries, without any physical presence, are likely to be adversely impacted by the changing international tax regime. The tax challenges arising from digitalisation of the economy were identified as one of the main areas of focus of the Base Erosion and Profit Sharing (BEPS) Action Plan, leading to the 2015 BEPS Action 1 Report on ‘Addressing the Tax Challenges of the Digital Economy’. Thereafter, the focus of the countries has been to draw up a conclusive plan for the governments’ right to tax multinationals, through the Organisation for Economic Cooperation and Development (OECD), which is currently working on releasing a methodology for such taxation, by 2020.
October 15, 2019
Since the inception of the Companies Act, 2013 (“Act”), the Government of India (“Government”) has undertaken and continues to undertake various amendments to the Act including the recent amendment dated July 31st, 2019, in which approximately 21 (twenty-one) criminal offences were decriminalized and re-categorized as civil offences.
Since then there have been constant deliberations to decriminalize more and more criminal offences under the Act, with the intent to avoid unwarranted prosecutions against the executives of the companies and provide a fair chance to compound the civil offences by paying penalties only.
October 7, 2019
Can you rescue your raw materials or unfinished products from a company after it goes under insolvency?
The answer is yes, as held by the National Company Law Tribunal (“NCLT”), Chandigarh Bench.
September 27, 2019
Congratulations to ILN member, Josephine Peng, of Lee & Li, Taiwan, who has been shortlisted for Tax Dispute Resolution by Euromoney Legal Media Group in the Asia Women in Business Law Awards 2019! Further congratulations to Lee & Li for their country award for Taiwan. The awards will be given during a celebration of the advancement of women in the legal profession in the region on November 3rd in Hong Kong. Read more…
September 23, 2019
Judgment: State Bank of India v Moser Baer Karamchari Union [Company Appeal (AT) (Insolvency) Number 396 of 2019]
Forum: National Company Law Appellate Tribunal (“NCLAT”).
Judgments delivered on: August 19, 2019.
Act/Law: The Insolvency and Bankruptcy Code, 2016 (“Code”).
September 20, 2019
Finance Minister Smt. Nirmala Sitharaman at the 37th GST Council Meet held today i.e. September 20th 2019 has announced to reduce the corporate taxes for domestic companies and new local manufacturing companies through an ordinance.
The highlights of the Taxation Laws (Amendment) Ordinance of 2019 (“Ordinance”) are enumerated below: