Section 2 (1) (sa) of the Prevention of Money Laundering Act, 2002 (PMLA) defines ‘persons carrying out designated business or profession’. Sub-section (sa) (vi) grants power to the Central Government to designate any other person as ‘person carrying out designated business or profession’ by way of a notification.  Vide Notification S.O. 2036(E) dated May 3,...Read More

The concept of beneficial ownership is very important in the Indian context. It has been discussed in various acts in India.  Companies Act, 2013 The Indian Companies Act, 2013 and Companies (Significant Beneficial Owners) Rules state the criteria for identification of significant beneficial owner.  Significant beneficial owner means any individual, who acting alone or together...Read More

Banks are the backbone of an economy as they promote economic stability by providing liquidity, facilitating transactions and creating credit. Failure of any bank can cripple the economy and have a ripple effect on the entire financial system. It can trigger a chain reaction of defaults and losses, across various regions, leading to a wider...Read More

What is Force Majeure Clause The term force majeure (loosely translated as ‘superior force’) is derived from French Civil Law.  It refers to a clause which is typically used in agreements / contracts to exempt a party/ parties from performing their obligations where performance is impacted by unforeseen events which are outside its/ their control. ...Read More

Any change in the registered office of a company requires prior approval from the Ministry of Corporate Affairs (MCA).  The process for change of registered office of a Company is stated below:  Change of Registered Office within the same City    Convene Board Meeting and pass a simple Board Resolution for change of registered office  File...Read More

Are there any exemptions/ exceptions to sanctions  The aim of the sanctions regime is to curb the activity of specified individuals/ entities and not target the general masses per se. Hence the sanctions regime includes various exceptions and exemptions.  Often the terms exceptions and exemptions are used interchangeably. However there is a thin line of...Read More

What is the doctrine of Indoor Management  The doctrine of Indoor Management states that any outsider who has entered into a transaction with a company can presume that there are no internal regularities and that all procedural requirements have been complied with by the company. It is also known as Turquand’s Rule.  What are the...Read More

What is the doctrine of Ultra Vires Ultra vires is a Latin phrase which means ‘beyond the powers of’. The doctrine of ultra vires means that a Company cannot act beyond the powers which are conferred to it. The Memorandum of Association states the objects which can be undertaken by a Company. The Articles of...Read More

Does India impose any sanctions  India as a country does not have an autonomous sanctions regime. Hence, per se by itself it does not impose any sanctions. However, as India is a member of the United Nations, it needs to comply with the sanctions which are imposed by the United Nations. Does India maintain a...Read More

What are sanctions  Imposition of sanctions is a legal measure wherein restrictions can be imposed against any person/ entity that does not respect the international laws. They include a broad range of enforcement options that do not involve the use of armed force. Sanctions are usually regarded as a non-military means of coercion.  International sanctions...Read More