Navigating Restriction on the Transfer of Promoters Shares

By Burgeon Law / Corporate and Commercial, Funds, Investments / February 8, 2024 March 7, 2024

Safeguarding Investments: Navigating Restriction on the Transfer of Promoters Shares In the dynamic landscape of investments and corporate governance, the ownership of shares by a company’s promoters holds significant sway over business trajectories. Investors keen on ensuring stability and long-term growth must carefully navigate the intricacies of promoter stability and share transferability concerns. Unrestricted transferability …

Navigating Restriction on the Transfer of Promoters Shares Read More »

Nominees or Legal Heir, Who Has The Legal Right Over Shares?

By Burgeon Law / Investments / February 8, 2024 March 7, 2024

In a significant ruling on December 14, 2023, in the case of Shakti Yezdani v. Jayanand Jayant Salgaonkar (Civil Appeal No. 7107 of 2017), the Hon’ble Supreme Court (“Supreme Court”) has cleared the air on a critical subject. The ruling pertains to whether the rights of a nominee under the Companies Act, 1956 (Section 109A …

Nominees or Legal Heir, Who Has The Legal Right Over Shares? Read More »

Enigma of Angel Tax Provisions

By Burgeon Law / Funds, Investments / February 8, 2024 February 9, 2024

Impact of Section 56(2)(viib) Amendment on Non- Resident Investors When the Finance Act, 2023 amended Section 56(2)(viib) of the Income Tax Act, 1961 to make the angel tax provisions applicable to share application / premium received from non- resident investors as well, concerns were raised by several overseas stakeholders, who often obtain valuation reports at …

Enigma of Angel Tax Provisions Read More »

Impact of Digital Personal Data Protection Act, 2023 on Transaction Documents

By Burgeon Law / Data Privacy, Investments / February 7, 2024 March 7, 2024

Decoding The Impact Of Digital Personal Data Protection Act, 2023 On Transaction Documents After what seemed like an eternity, India has finally gotten its personal data privacy legislation in form of Digital Personal Data Protection Act, 2023 (“Act”). The Act is nothing short of a seismic shift in India’s approach to safeguarding personal data in …

Impact of Digital Personal Data Protection Act, 2023 on Transaction Documents Read More »

Franchising Model: A Brief Overview

By Burgeon Law / Corporate and Commercial, Investments / February 7, 2024 March 7, 2024

Franchising is one of the common business models that allows a company to expand its reach by granting the right to use its products, services and brand names to another party in exchange for a fee. It is a beneficial relationship for both the franchisor and the franchisee wherein the franchisor gets an efficient method …

Franchising Model: A Brief Overview Read More »

Treatment of Convertable Notes as Financial Debt Under IBC

By Burgeon Law / Funds, Investments / February 6, 2024 February 9, 2024

Possible Treatment Of Convertible Notes As Financial Debt Under IBC Similar to Compulsorily Convertible Debentures (“CCDs”), Convertible Notes (“CNs”) are hybrid instruments that combine elements of debt and equity. However, unlike CCDs, CNs are defined under the Companies Act, 2013. Rule 2 of the Companies (Acceptance of Deposits) Rules, 2014 (Deposit Rules), defines CNs as …

Treatment of Convertable Notes as Financial Debt Under IBC Read More »

Unraveling The ‘flipping’ Phenomenon Among Indian Startups

By Burgeon Law / Corporate and Commercial, Investments, Start-Ups / February 6, 2024 March 7, 2024

Introduction In the evolving landscape of Indian entrepreneurship, the phenomenon of Indian startups ‘flipping’ into foreign jurisdictions has emerged as a strategic maneuver, capturing the attention of founders, investors and industry observers. This trend, marked by the relocation of startup headquarters to international destinations such as US and Singapore, brings forth a myriad of implications …

Unraveling The ‘flipping’ Phenomenon Among Indian Startups Read More »

Share Transfer Valid Despite Non-Payment: Delhi High Court

By Burgeon Law / Funds, Investments / February 6, 2024 March 7, 2024

Title to shares cannot be challenged on account of non- payment of consideration where share transfer form is validly executed and the transferee’s name is recorded in the register of members: Delhi High Court Introduction In a judgement passed by the Delhi High Court on December 15, 2023, in the case of Shashwant Nakrani vs. …

Share Transfer Valid Despite Non-Payment: Delhi High Court Read More »

Understanding the Civil Liabilities and Importance of D&O Insurance for Company Directors in India

Civil liabilities of a director and why every investor needs a D & O insurance policy

By Burgeon Law / Compliance, Funds, Investments, Setting Up a Company / March 27, 2023 April 12, 2024

The role of directors in a company is to provide leadership, guidance, and oversight to ensure that the company is being run in a responsible and ethical manner, and that its goals and objectives are being achieved. The directors play a crucial role in ensuring that a company operates in the best interests of its …

Civil liabilities of a director and why every investor needs a D & O insurance policy Read More »

Claw-back and Reverse Vesting in light of the Ashneer Grover Saga: An Explainer

By Burgeon Law / Funds, Investments / March 27, 2023 January 30, 2024

A stint as a “shark” on the business reality television series, “Shark Tank India”, made Mr. Ashneer Grover a household name. His fame skyrocketed given his no-nonsense attitude, quick wit and an unparalleled zeal for all things business. It would not be wrong to say that he was having a dream run, with a loyal …

Claw-back and Reverse Vesting in light of the Ashneer Grover Saga: An Explainer Read More »

Investments

Disclaimer