A company can sell its assets and liabilities through slump sale. As per section 2(42C) of the Income Tax Act, "slump sale" means the transfer of one or more undertaking, by any means (“by any means” was substituted with “as result of sale” as per the Finance Act, 2021. In my opinion and understanding, it … Continue reading Understanding Slump Sale vs Demerger: Key Tax Differences
POSITION OF CREDITORS IN THE CASE OF DEMERGER AND SCOPE OF SECTION 230-232 OF THE COMPANIES ACT WRT TO CREDITORS
UNDERSTANDING THE “UNDERTAKING” As we all know that in the case of Demerger, company transfer’s its undertaking as going concern to the resulting company which can be a new company or existing company. Interestingly, “undertaking” has not been defined under this section but under the explanation to section 180 (1)(a) which says that undertaking means … Continue reading POSITION OF CREDITORS IN THE CASE OF DEMERGER AND SCOPE OF SECTION 230-232 OF THE COMPANIES ACT WRT TO CREDITORS
How Share Capital will be treated in case of Demerger b/w Listed Holding Company and its Subsidiary
As we have already discussed in our previous article about the basics of demerger so, in this article we will keep the scope limited to the treatment of share capital in the case of demerger. For any demerger transaction between holding and its wholly owned subsidiary it is mandatory to obtain a share valuation report … Continue reading How Share Capital will be treated in case of Demerger b/w Listed Holding Company and its Subsidiary
Capital Reduction via Buy Back is not permissible under Section 66 of Companies Act 2013
Section 66 of the Companies Act, 2013 speaks about the Capital reduction and capital reduction of the shares can be done only through a special resolution but tribunal approval is required i.e. NCLT for the purpose of Capital Reduction. A company can reduce its capital by cancelling or extinguishing the shares subject to the special … Continue reading Capital Reduction via Buy Back is not permissible under Section 66 of Companies Act 2013
Understanding Statement of Use in U.S. Trademark Law
Statement of Use (SOU) in US Trademark Law A Statement of Use or SOU is a formal declaration filed with the United States Patent and Trademark Office (USPTO) to show that you are actually using a trademark in U.S. commerce. It is only required when an application was filed on an intent-to-use basis Section 1(b) … Continue reading Understanding Statement of Use in U.S. Trademark Law
DECODING THE TERM SHEET
TERM SHEET A term sheet is the initial document i.e. signed between the investors and startup. Term sheet itself is not legally binding document but many time this document is exchanged with the confidentiality and related agreements. Although Term sheet may not be legally binding but it is like an architect plan which set forth … Continue reading DECODING THE TERM SHEET
Understanding Private Equity: A Beginner’s Guide
(Think Like Founder Series- By Ductus Legal-Volume II) What is a Private Equity?In simple words, ownership in Companies which are privately held and are not listed on Public stock exchange. Private equity investment is popular for its high risk and greater rewards, it's said that it generates better returns than stocks.Popular Startups of present day … Continue reading Understanding Private Equity: A Beginner’s Guide
THINK LIKE FOUNDER- COMPANY LAW CONCEPTS SIMPLIFIED FOR THE FOUNDERS AND STUDENTS. (VOLUME-1)
HOW TO START? One Strategy to understand the Company law for students or professionals those who have no background of the subject i.e. Think Like a founder who is starting a "Business". Now Read it.So the first question you should ask yourself as a founder, how many people you need to start your "Company"? Minimum … Continue reading THINK LIKE FOUNDER- COMPANY LAW CONCEPTS SIMPLIFIED FOR THE FOUNDERS AND STUDENTS. (VOLUME-1)
Understanding Promoter Lock-In: Importance for Investors
PROMOTER LOCK-IN Promoter or Founder Lock-In is a standard clause in most Shareholder Agreements that prohibits the promoter/founder group to sell their shares to anyone without the prior written consent of the Investor. WHY DO INVESTORS INSIST FOR A PROMOTER LOCK-IN? Retain Skin in the game (SITG): Promoters have the maximum stake/SITG in their company. … Continue reading Understanding Promoter Lock-In: Importance for Investors
Understanding Cryptocurrency Law: Key Insights
Brief Overview of CryptocurrencyDownload
DUCTUS EDGE 