Category: Corporate and Finance
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Hostile Takeovers in India: L&T-Mindtree case study from an Employment Law vantage
Introduction The Indian Mergers and Acquisitions (“M&A”) landscape has predominantly been marked by friendly acquisitions and takeovers. However, for more advanced economies like the United States of America (“US”) and United Kingdom, the prevalent modes of corporate acquisitions have also included hostile takeovers entailing multi-billion-dollar deals. In a simplified understanding, as opposed to friendly takeovers,…
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Restricted Stock Units: Whether ESOPs or Not?
Introduction: What are Restricted Stock Units? Restricted Stock Units (RSUs) are a kind of performance based employee compensation granted by companies, that entitles the employee to the shares of the company (or in some cases, cash equivalent of the shares) after the vesting period is over, provided that the conditions pertaining to performance and duration…
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Decoding RBI’s Framework to Regulate the Housing Finance Companies
Introduction On June 17, 2020, the Reserve Bank of India [RBI] released the ‘draft framework’ for the regulation of Housing Finance Companies [HFCs]. The proposed framework introduces some major changes in the HFC regime by clearly differentiating housing loans from non-housing loans, defining the ‘principle business’ of the HFCs, doubling the net owned fund threshold,…
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Share Transfer and Specific Performance
With changing nature of economy, the nature of investments has changed. A company or a business which was once owned by an individual is now owned by a pool of individuals. These individuals buy shares of the company, and being the shareholders, they own the company to the extent of shares they purchase. The shareholders…
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Does COVID-19 qualify as a Force Majeure Event with respect to all contracts?
Introduction: COVID-19 was categorized as a pandemic by the World Health Organization (“WHO”) on March 11, 2020. There is a significant impact on the business sector around the globe. In this era of open borders and extra-territorial business activity, this pandemic can lead to an enormous slowdown of the global economy. One of the apprehensions…
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Arbitration Agreements and Insolvency Proceedings – An unresolved conflict
Introduction The National Company Law Tribunal (“NCLT”) Mumbai Bench, on 9th June 2020, in the case of Indus Biotech Private Limited v. Kotak India Venture Fund-I, referred the case to Arbitration, while refusing to admit the application filed u/s 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). It has raised very important questions in…
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