01 November 2020

Corporate Amicus: August 2020


Corporate Social Responsibility and implementation agencies
By Sudish Sharma and Shikha Thakkar

Corporate Social Responsibility (“CSR”) was introduced under the Companies Act, 2013 to discharge social responsibility through innovative ideas and management skills. Companies (Corporate Social Responsibility Policy) Rules, 2014 in this regard empower the board of directors to undertake the CSR activities of a company through implementing agencies. The High-Level Committee recently addressed certain issues like eligibility of international organisations and registration of these agencies. The article in this issue of Corporate Amicus discusses at length the recently released draft Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020 which are yet to be notified. According to the authors, the Draft Rules are a ray of hope in regulating these implementation agencies and ensuring a greater transparency by formulating the registration process. The authors believe that the inclusion of international organizations is a welcome initiative as these organisations have abundant technical resource and greater experience on international footing. They conclude by stating that effective partnerships between companies and implementation agencies is likely to place India’s social development trajectory on a faster track...

Notifications and Circulars

  • Fair Practices Code for Asset Reconstruction Companies
  • RBI to administer Foreign Exchange Management (Non-debt Instruments) Rules
  • SEBI – Procedural guidelines issued for Proxy Advisory Firms
  • SEBI One Time Settlement Scheme, 2020 introduced
  • Mechanism for margin obligations to be given by way of pledge / re-pledge in depository system implemented from 01-08-2020
  • Transfer of shares in insurance companies – IRDAI issues clarification
  • Industrial Disputes and Certain Other Laws (Karnataka Amendment) Ordinance, 2020 promulgated to amend the Industrial Disputes Act, 1947, the Factories Act, 1948 and the Contract Labour (Regulation and Abolition) Act, 1970
  • Public procurement – Restrictions on bidders from countries which share land border with India
  • Insolvency – Appointment of liquidator – IBBI (Voluntary Liquidation Process) Regulations, 2017 amended
  • Liquidator fee – IBBI (Liquidation Process) Regulations, 2016 amended

Ratio decidendi

  • Debenture Trustee can file a petition under Section 7 of IBC on behalf of Financial Creditor-Debenture Holder – NCLT Mumbai Bench
  • Timelines under Section 29A of Arbitration and Conciliation Act, 1996 have retrospective effect from 23-10-2015 – Delhi High Court 
  • Dispute as to title of shares cannot be decided in proceedings under Section 241/242 of Companies Act, 2013 – Supreme Court

News Nuggets

  • Execution proceedings – Delhi High Court formulates detailed affidavit of assets and income of judgement-debtor and lays down guidelines for Executing Court
  • Consumer Protection Act, 2019 comes into force from July 20 and 24, 2020
  • E-Commerce – Consumer Protection (E-Commerce) Rules, 2020 notified
  • RBI Circulars on loan moratorium are not applicable to mutual funds and debentures
  • Insolvency – IBC Section 10A applicable even for applications filed before promulgation of Ordinance inserting said sections
  • Report by the Committee of experts on Non-Personal Data Governance Framework – Non-Personal Data defined
  • Lockdown – Supreme Court extends time periods prescribed under Arbitration and Conciliation Act, 1996, Commercial Courts Act, 2015 and for service of notices, summons etc
  • Unpaid instalment of a settlement agreement is not ‘Operational Debt’
  • Contractual workers also entitled to benefits under the Maternity Benefits Act
  • Writ Petition maintainable against private bank for enforcement of RBI Circular on loan moratorium

August, 2020/Issue-107 August, 2020/Issue-107

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