18 Jan 2017

The Insolvency and Bankruptcy Code notified on 28th May, 2016 (“Code”), lays down the structure for a unified insolvency and bankruptcy resolution mechanism in India. This is an important legislation for corporate India because the term "insolvency" has not previously been defined under India’s corporate law framework, although Section 433 of the erstwhile Companies Act 1956 provided for grounds of winding up a company that is "unable to pay its debts". [Black’s Law Dictionary defines the term “insolvency” as “the condition of being unable to pay debts as they fall due or in the usual course of business”][1].>>

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09 Jan 2017

The Securities and Exchange Board of India (“SEBI”), the regulator of securities market in India, had during its meeting held on September 23, 2016, expressed concerns over compensation agreements and profit sharing agreements such as side agreements / reward agreements executed between private equity (“PE”) firms and top personnel and key managerial personnel (KMP) of listed entities. As per SEBI, when such agreements are executed without any prior approval of the shareholders, it could lead to unfair practices.>>

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