What's in a name' - channeling Shakespeare, we looked at the changes in the Companies Act, 2013 ("2013 Act") with respect to preference and equity shares. The scheme of erstwhile Companies Act 1956 ('1956 Act') under Part IV - titled 'Kinds of Share Capital', was two-fold.
The Companies Act, 2013, ('New Act') attempts to consolidate all the methods available to a company to raise capital. Chapter III and Chapter IV of the New Act sets out all the methods by which any company, whether private or public, could raise capital.
With the passing of the Companies Act, 2013 (New Act) replacing the Companies Act, 1956 (Old Act), investors have to deal with several new concepts and principles now governing their investments into Indian companies. The government is implementing the New Act in a phased manner but most of the provisions of the New Act have already been notified.
Bar & Bench recognizes Srinivas Katta as the Dealmaker for his role in Softbank’s investment in Snapdeal. We understand that the complex transaction included multiple legal and commercial issues. Katta not only provided valuable legal advice to his client, but also helped the investors and management come together and close the deal.
The provisions relating to buy-back of securities under the Companies Act, 2013 ("Act of 2013") are an attempt to build upon the experience of the current buy back regime (as introduced in Companies (Amendment) Act, 1999) under the Companies Act, 1956 ("Act of 1956"”). An effort has been made by the legislature to bring in transparency and clarity in the buy-back process by enacting stringent norms, with the intent to make the provisions less ambiguous. This article sets out some of the key changes proposed in company law with regard to buy-back provisions under the Act of 2013 vis- a- vis the Act of 1956. This article further touches upon the provisions pertaining to buy-back of securities under UK Companies Act, 2006 ("UK Act") to examine whether the changes under the Act of 2013 are in line with global practice
A common question that usually arises at the time of closing in a private investment in public equity (PIPE) deal or a private equity or venture capital investment transaction in India is: ‘Which of the provisions in the definitive agreements, relating to the investment, must be captured in the restated Articles of Association (AoA) of the company?’ The AoA of a company is its ‘Magna Carta’. It regulates the internal management and defines the powers of the officers of the company. It is also a contract between the members inter se, which governs the rights and obligations incidental to membership in the company. The AoA also describes the rights and obligations attached to securities covered under share subscription, shareholders’ or investment agreements. Subject to the provisions contained under the Companies Act, 1956 (the ‘Act’), the company and its members are bound by the provisions contained under the AoA of the company