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Showing posts with the label India

Four Upcoming Labour Law Bills that Can Change India's Business Landscape

Article by Shivangi Tokas , Edited by Aditya Bhushan . India Inc. is ready once again. While it had fallen from the grace of the fastest growing country in the world due to the dual effects of demonitisation and COVID-19, the country might have just escaped its worst economic downturn and now seems to be pushing up. However while there still are problems , due to the US-China trade war, several manufacturing hubs seem to be leaving China and setting up business in India . But why did businesses leave out India and turn to China in the first place? Turns out the problem lay in the tax and labour laws of our country. And, while we made a significant improvement in the tax laws (related read: professional tax in India ), we still have a very old set of labour laws that are pushing India's manufacturing businesses in a very hard path - a path which prevents them from effectively competing with foreign businesses. But India has taken notice and has redrafted its compila

Recent Trends in Mergers and Acquisitions in India

Article by Varsha Chamakura , Edited by Adhip Ray. Subsequent Revisions made by independent authors to keep the article up-to-date. The concept of Mergers and Acquisitions (M&A) has attracted the corporate sphere all over the world. Mergers and acquisitions (M&A) activity in India is no different.  M&A culture in India increased over the years, after the removal of constrictive arrangements and liberalisation of the Indian economy. M&As are strategic tools that are used for the development of the economy.  This is done by expanding to low cost markets or emerging markets, especially those which have a high number of skilled workers or by acquiring well established corporate entities.  M&A culture in India has been prevalent since 2015, and has only become grown in popularity over the years.  M&As is most common in the sectors of Energy, Mining and Utilities, followed by Telecommunication, Consumer Durables and Pharmaceuticals. Related Read: An

What constitutes Trademark Infringement in India: An In-depth Analysis

Article by Janhavi Dudam . An owner of a trademark has the right either to use his trademark himself or assign it to others. If the product and services used are identical or deceptively similar to which the mark is registered then it would constitute an infringement. In the case of a registered trademark, the registered proprietor user may take action against the infringement. But if a trademark is not registered, it is likely to maintain a common law remedy for passing off action. Sec 29 of the Trademarks Act, 1999 , provides that a registered trademark is infringed by an individual who, not being a registered owner or a registered user, uses a mark that is identical or deceptively similar to that of an equivalent product or services for which the mark is registered. In this article, you will get to know when an act constitutes infringement of copyright, when it's teetering on the edge and when one's not infringing. So, let's get going!

All About Company Resolutions under Indian Law

Article by  Vanshika Godara , Edited by  Drishti Saigal Since a company is an artificial person and given a legal persona, any decision which is to be taken by the company are in legal talk, known as a ‘Resolution’. During the lifetime of your company, you need to hold some general or board meetings whenever an important decision is to be made by the members and directors. In these instances, some procedures and rules are to be followed by the company to ensure that the execution of these formal meetings is complying with the Companies Act. An example of a resolution could be a company’s board decision of reducing the wages for its executives as a result of an extended period of decreased profits, with the aim of minimizing the company's overall expenses. A smaller scale business resolution would be a manager's decision to fire an employee because of his/her bad performance. These are just examples and there are a lot of legal intricacies that are involved

Corporate Social Responsibility in India

Article by  Vanshika Godara , Edited by Drishti Saigal Corporate Social Responsibility is not a brand new construct in India.  However, the Ministry of Corporate Affairs, Government of the Republic of India has recently notified the Section 135 of the Companies Act, 2013 beside corporations through the (Corporate Social Responsibility Policy) Rules, 2014.   "Hereinafter CSR Rules" and the alternative notifications connected to that, which makes it  mandatory. Sub Section (1) of Section 135 provides the base-line for companies to adhere to the provisions relevant to Corporate Social Responsibility. According to Sub Section (1) of Section 135 - Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which

Law relating to Audits of Private Companies in India

Article by Anant Pratap Singh Chauhan , Edited by Chinmay Jain . Private Company is a type of company, wherein the company does not float shares in public for the purpose of amassing capital.  A private company has been defined under Section 2(68) of the Companies Act, 2013 as – “private company means a company having a minimum paid-up share capital as may be prescribed, and which by its articles, — restricts the right to transfer its shares; except in case of One Person Company, limits the number of its members to two hundred: Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member: Provided further that— persons who are in the employment of the company; and persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in

All about Limited Liability Partnerships in India

Article by  Varsha Chamakura . Partnership under The Partnership Act,1932 in business or profession is considered to be the oldest legally accepted organisation, which consists of more than one person.  A partner has unlimited liability, but due to advancement in Commerce, its Allied activities growth and the business organisation, the law had to be changed to suit the present conditions.  That is why another type of partnership was formed – the Limited Liability Partnership. In this type of Partnership, the liability of partners incurred in the normal course of business does not extend to the personal assets of the partners. This type of partnership is most common among Small and Medium Enterprises (SMEs), small businesses and professional services. Limited Liability Partnerships or LLP is considered as something that attains principal benefits of both, partnership and companies. Due to the wide scope and advantages of LLP as compared to the general partnership,it is ga

Data Privacy Laws in India and Its Impact on Business

Article by Ankita Rathi , Edited by Chinmay Jain Our privacy is invaded every time and everywhere due to the advancements in science and technology. Privacy is something that is an individual as well as a social value. Most of the privacy breaches and invasions and copyrights violations exist in cyberspace though they are invisible.  Due to many media interventions, it has become very difficult for people to keep information that is confidential or even the anonymity of the conversations and many more things. Piracy is a lucrative business nowadays. However, the laws lag behind the digital revolution. Data privacy is a part of information technology (IT). It helps the organizations and even the individuals to determine as to which information in the computer system can be shared with the third party. Data is one of the most important asset for the company. As the economic activity related to data is increasing, many organizations find it essential to use, share, and collect d