Monday, April 18, 2016

Buy Back of Shares by Private or Unlisted Company

The provisions relating to buy-back of securities, under the Companies Act 2013 namely sections 68 to 70, which have been notified, have now repealed the provisions relating Companies Act, 1956.

Points to be noted:
1. A company may buy-back its own shares or other specified securities out of—
             (i) its free reserves; or
             (ii) the securities premium account; or
            (iii) the proceeds of any shares or other specified securities:

Thursday, April 14, 2016

Scope of Re-examination under Indian Evidence Act

Witness cross re-examination to kill a mocking birdWith increasing trend of appointment of Court commissioners to overlook witness examinations, lawyers are required to be more vigilant during depositions. Earlier, if any question beyond the scope of re-examination was put to a witness, the Judge would generally not permit such question to be asked, notwithstanding a lack of objection from the opposing party. While reading a commissioner’s report, such a fact may not strike the Judge at all. If an objection to the question by the opposing party has not reflected in the report, rejecting such portion of the deposition may slip the Judge’s mind entirely and that portion of the evidence may remain on record till the proceedings are disposed of. Thus, it is essential to properly understand the scope of re-examination of witness.

Tuesday, April 12, 2016

Procedures you need to know: Voluntary Winding Up of LLP

A. Making of Declaration
Ø  The majority of its designated partners (being not less than two) must make a declaration in Form No. 2 verified by an affidavit to the effect that the LLP has no debt or that it will be able to pay its debts in full within such period, as may be specified in the declaration, but not exceeding one year from the commencement of the winding up.

Ø  However, such declaration shall have no effect for the purposes of Limited Liability Partnership Act, 2008 (“the Act”) and the Limited Liability Partnership (Winding up and Dissolution) Rules, 2012, (“the Rules”) unless —

Saturday, April 9, 2016

Over 750 Office Space Leases in Mumbai to Expire in 2016

The year 2016 is the year for taking up offices on lease basis. As per research conducted by PROPSTACK, a commercial real estate information and analytics company, the sums involved in the lease renewal, consisting of an average period of thirty-six months, will be approximately Rupees 50 Crore a month. Although, 77% of 750 office lease renewal are below 5,000 sq. ft., the leases range from as low as 500 sq. ft. to 2,35,000 sq. ft.
The Information Technology sector (which includes Information Technology enabled Services sector) and Banking, Financial services and Insurance sector continue to dominate the leasing activity in Mumbai. “Mumbai has remained a financial capital hub where IT-ITeS and BFSI companies have continued to dominate the office space take-up. Last year BFSI, manufacturing and pharmaceutical sector played a major role in leasing apart from the technology firms. This trend is expected to continue in 2016 as well,” said the director of PROPSTACK, Raja Seetharaman.