Tag: corporate governance

The Supreme Court's ("Court") decision in Satinder Singh Bhasin v. State (NCT of Delhi) ("Case"), constitutes a significant reaffirmation of the principle imposed by Section 185 of the Companies Act......

Legacies, while the sturdiest, are often the most vulnerable to that harsh cousin of time, change. The battle royale being played out between Tata Sons and Cyrus Mistry, of the Shapoorji Pallonji Group, certainly seems to echo the thought, and is being closely monitored, as the outcome will set the way forward for one of the biggest conglomerates in India....

Related party transactions have once again found themselves the subject of public scrutiny due to occurrences at InterGlobe Aviation Limited ("Interglobe"), which runs and operates the low-cost airline Indigo. Interglobe has been facing stormy weather following a dispute between its promoters, Rakesh Gangwal and Rahul Bhatia. Since mid-2018 the feud between both promoters has snowballed into a very public feud. While there are several contentious issues on which the promoters disagree, one of the main reasons for their public fallout has been over related party transactions. In 2018, Rakesh Gangwal flagged and alleged that Interglobe has entered into related party transactions with several companies associated with Rahul Bhatia, a charge that the latter insists is mala fide. ...

In January 2009, India witnessed one of its biggest corporate scandals - the ‘Satyam scandal’ also referred to as ‘India’s Enron’. Satyam Computers Services Limited ("SCSL") was under the microscope for fraudulent activity and misrepresentation of its accounts to its board, stock exchanges, regulators, investors and all other stakeholders. Thereafter, shareholders of SCSL, approximately 300,000 were unsuccessful in claiming damages worth millions due to the absence of the provision for filing a class action suit under the Companies Act, 1956.American investors on the other hand were able to claim their part of damages in the US courts through a class action suit against SCSL....