#IBC / Insolvency and Bankruptcy Code

[akgvgassociates]

Forensic Accounting: Enabling fraud detection

Forensic accounting aims to evaluate financial records and identify fraud using a combination of accounting, auditing, and investigation abilities. It involves applying accounting techniques to legal problems and disputes to provide evidence that can be used in legal proceedings. Forensic accountants are frequently requested to investigate financial fraud and give qualified testimony in court. Read More:  Forensic Accounting: Enabling fraud detection

[once-in-a-blue-moon2021]

Challenging the IBC: No Shortcuts, No Surrenders! (DIGITAL POSTERS)

Posted on 29th December, 2024 (GMT 14:20 hrs) ’Tis the final conflict,Let us unite and tomorrow,The InternationalWill be the human race 📢 DHFL VICTIMS: THE FINAL BATTLE FOR JUSTICE BEGINS! ⚖️ Lakhs of small investors of DHFL—FD holders, NCD holders, and ordinary citizens—stand at the edge of a Supreme Court verdict on the DHFL Scam. The Insolvency and Bankruptcy Code (IBC, 2016), touted as a…

[news365timesindia]

[ad_1] Paromita Das GG News Bureau New Delhi, 28th Dec. A Reversal of Opinions: Raghuram Rajan, the former Governor of the Reserve Bank of India (RBI), has been a vocal critic of the Modi government during his tenure at the central bank. His frequent disagreements with the government, particularly over monetary policies and handling of the economy, earned him the tag of being a “darling of the opposition.” However, in a surprising turn of events, Rajan recently lauded the Modi administration for its effective management of Non-Performing Assets (NPAs), a key challenge for the Bharatiya banking system. This unexpected praise comes after years of sharp criticisms and is worthy of scrutiny, considering Rajan’s pivotal role in the banking reforms during his tenure at RBI. Understanding the NPA Crisis: The Historical Context: To comprehend the significance of Rajan’s recent remarks, it is essential to revisit the context of Bharat’s NPA crisis. NPAs are loans that have gone unpaid for an extended period, and their rise in the Bharatiya banking system has been a long-standing issue, primarily beginning after the global financial crisis of 2008. Rajan noted that projects funded by banks before the crisis started facing significant setbacks post-2008 due to factors such as corruption, delays in permits, and mismanagement. These factors caused a steep rise in NPAs, especially in public sector banks. Rajan’s 2015 Asset Quality Review (AQR) was a watershed moment in addressing this crisis. The AQR helped to clean up the balance sheets of banks by ensuring that bad loans were promptly identified, with the necessary provisioning made. According to Rajan, this was crucial for alleviating the growing financial insecurity surrounding public sector banks. He recalled how he took his proposal for an AQR and the end of the moratorium on bad loans to Arun Jaitley, the then Finance Minister, who approved it without hesitation. This marked a turning point in the fight against NPAs. The Modi Government’s Response, A Shift in NPA Management: Rajan’s praise for the Modi government’s handling of NPAs aligns with recent updates from Finance Minister Nirmala Sitharaman. According to her, between 2014 and 2023, the government’s initiatives helped recover more than ₹10 lakh crores from bad loans. The gross NPA ratio fell to a 12-year low of 2.8 percent by the end of the fiscal year 2024. These figures are a direct reflection of the government’s ongoing efforts to manage bad loans and prevent further escalation of the NPA crisis. Rajan acknowledges that the implementation of AQR was a pivotal step. However, the Modi government’s broader policy initiatives played a crucial role in reducing NPAs over time. One of the most significant steps was the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016. This law gave authorities the power to take control of defaulting companies from their promoters, thereby protecting the interests of creditors. Additionally, wilful defaulters were barred from participating in the resolution process, ensuring that there would be greater accountability. Additional Measures to Tackle NPAs: Alongside the IBC, the government took several other steps to address the NPA issue. One such measure was the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, allowing banks to auction the assets of defaulters. This was complemented by the establishment of the National Asset Reconstruction Company Limited (NARCL) to resolve stressed assets over ₹500 crore. The government also provided a ₹30,600 crore guarantee to back NARCL’s receipts, further enhancing the efficiency of the recovery process. Public sector banks were also restructured through the establishment of Stressed Asset Management Verticals, such as the one in the State Bank of India (SBI), to manage and recover loans more effectively. These verticals allowed banks to monitor loans more closely, ensuring that any potential defaults were caught early.

Moreover, the RBI implemented a system of Early Warning Signals (EWS) to trigger timely remedial actions for loans at risk of default. A Positive Outlook: Rajan’s Acknowledgment: Raghuram Rajan’s acknowledgment of the Modi government’s success in reducing NPAs is notable, especially considering his earlier critiques. He conceded that the government’s approach, including the AQR, the IBC, and other reforms, helped set the stage for the reduction in bad loans. As he put it, “Eventually the situation is back on track,” signifying a recovery after years of financial distress. Rajan’s perspective carries weight given his experience and expertise in managing the Bharatiya economy, and his remarks add credibility to the government’s claims of progress. Conclusion: The Long Road Ahead: While the reduction in NPAs under the Modi government is a significant achievement, experts agree that the work is far from over. The underlying issues that contribute to the creation of bad loans—such as poor project planning, delays in clearances, and systemic corruption—continue to be challenges for Bharat’s banking sector. Therefore, while Rajan’s praise is deserved, it also highlights the complexity of tackling NPAs and the need for continued vigilance. The government’s strategy of combining regulatory reforms, legal frameworks, and institutional restructuring has certainly yielded results. Yet, with Bharat’s banking sector still grappling with certain vulnerabilities, it is essential to keep refining these measures. Raghuram Rajan’s shift in stance reflects a recognition of these efforts, providing a balanced view of the Modi government’s handling of one of the most significant financial challenges in Bharat’s economic history.   The post Raghuram Rajan’s Remark on Modi Government’s NPA Management: A Shift in Perspective appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[news365times]

[ad_1] Paromita Das GG News Bureau New Delhi, 28th Dec. A Reversal of Opinions: Raghuram Rajan, the former Governor of the Reserve Bank of India (RBI), has been a vocal critic of the Modi government during his tenure at the central bank. His frequent disagreements with the government, particularly over monetary policies and handling of the economy, earned him the tag of being a “darling of the opposition.” However, in a surprising turn of events, Rajan recently lauded the Modi administration for its effective management of Non-Performing Assets (NPAs), a key challenge for the Bharatiya banking system. This unexpected praise comes after years of sharp criticisms and is worthy of scrutiny, considering Rajan’s pivotal role in the banking reforms during his tenure at RBI. Understanding the NPA Crisis: The Historical Context: To comprehend the significance of Rajan’s recent remarks, it is essential to revisit the context of Bharat’s NPA crisis. NPAs are loans that have gone unpaid for an extended period, and their rise in the Bharatiya banking system has been a long-standing issue, primarily beginning after the global financial crisis of 2008. Rajan noted that projects funded by banks before the crisis started facing significant setbacks post-2008 due to factors such as corruption, delays in permits, and mismanagement. These factors caused a steep rise in NPAs, especially in public sector banks. Rajan’s 2015 Asset Quality Review (AQR) was a watershed moment in addressing this crisis. The AQR helped to clean up the balance sheets of banks by ensuring that bad loans were promptly identified, with the necessary provisioning made. According to Rajan, this was crucial for alleviating the growing financial insecurity surrounding public sector banks. He recalled how he took his proposal for an AQR and the end of the moratorium on bad loans to Arun Jaitley, the then Finance Minister, who approved it without hesitation. This marked a turning point in the fight against NPAs. The Modi Government’s Response, A Shift in NPA Management: Rajan’s praise for the Modi government’s handling of NPAs aligns with recent updates from Finance Minister Nirmala Sitharaman. According to her, between 2014 and 2023, the government’s initiatives helped recover more than ₹10 lakh crores from bad loans. The gross NPA ratio fell to a 12-year low of 2.8 percent by the end of the fiscal year 2024. These figures are a direct reflection of the government’s ongoing efforts to manage bad loans and prevent further escalation of the NPA crisis. Rajan acknowledges that the implementation of AQR was a pivotal step. However, the Modi government’s broader policy initiatives played a crucial role in reducing NPAs over time. One of the most significant steps was the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016. This law gave authorities the power to take control of defaulting companies from their promoters, thereby protecting the interests of creditors. Additionally, wilful defaulters were barred from participating in the resolution process, ensuring that there would be greater accountability. Additional Measures to Tackle NPAs: Alongside the IBC, the government took several other steps to address the NPA issue. One such measure was the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, allowing banks to auction the assets of defaulters. This was complemented by the establishment of the National Asset Reconstruction Company Limited (NARCL) to resolve stressed assets over ₹500 crore. The government also provided a ₹30,600 crore guarantee to back NARCL’s receipts, further enhancing the efficiency of the recovery process. Public sector banks were also restructured through the establishment of Stressed Asset Management Verticals, such as the one in the State Bank of India (SBI), to manage and recover loans more effectively. These verticals allowed banks to monitor loans more closely, ensuring that any potential defaults were caught early.

Moreover, the RBI implemented a system of Early Warning Signals (EWS) to trigger timely remedial actions for loans at risk of default. A Positive Outlook: Rajan’s Acknowledgment: Raghuram Rajan’s acknowledgment of the Modi government’s success in reducing NPAs is notable, especially considering his earlier critiques. He conceded that the government’s approach, including the AQR, the IBC, and other reforms, helped set the stage for the reduction in bad loans. As he put it, “Eventually the situation is back on track,” signifying a recovery after years of financial distress. Rajan’s perspective carries weight given his experience and expertise in managing the Bharatiya economy, and his remarks add credibility to the government’s claims of progress. Conclusion: The Long Road Ahead: While the reduction in NPAs under the Modi government is a significant achievement, experts agree that the work is far from over. The underlying issues that contribute to the creation of bad loans—such as poor project planning, delays in clearances, and systemic corruption—continue to be challenges for Bharat’s banking sector. Therefore, while Rajan’s praise is deserved, it also highlights the complexity of tackling NPAs and the need for continued vigilance. The government’s strategy of combining regulatory reforms, legal frameworks, and institutional restructuring has certainly yielded results. Yet, with Bharat’s banking sector still grappling with certain vulnerabilities, it is essential to keep refining these measures. Raghuram Rajan’s shift in stance reflects a recognition of these efforts, providing a balanced view of the Modi government’s handling of one of the most significant financial challenges in Bharat’s economic history.   The post Raghuram Rajan’s Remark on Modi Government’s NPA Management: A Shift in Perspective appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[arjasrikanth]

Over the past decade, India’s public sector banks *(PSBs)* have transformed from institutions burdened by *non-performing assets (NPAs)* into pillars of *financial stability.*

This recovery was driven by strategic interventions, including the Asset Quality Review *(AQR)* of 2015, which exposed systemic inefficiencies.

The government’s *four-pronged* strategy—Recognition, Resolution, Recapitalization, and Reform—ushered in landmark initiatives like the Insolvency and Bankruptcy Code *(IBC)* and the Enhanced Access and Service Excellence *(EASE)* framework.

These measures improved asset recovery, professionalized governance, and enhanced operational resilience.

With NPAs reduced *from 14.6% in FY18 to 5.2% in FY23* , PSBs now face new challenges in *unsecured retail lending* .

Balancing growth and risk management remains key to sustaining their *vital role in India’s economy.*

http://arjasrikanth.in/2024/12/20/banks-from-breakdowns-to-breakthroughs-in-indias-financial-saga/

[mksinghlegal]

Current Changes in Corporate Law in India

Corporate law in India has undergone significant reforms in recent years to align with global standards, improve ease of doing business, and ensure corporate accountability. These amendments are designed to streamline governance, promote transparency, and foster investor confidence.

Key Updates in Corporate Law:

Decriminalization of Minor Offenses The Companies (Amendment) Act, 2020 decriminalized many minor, technical, and procedural violations. The shift from criminal penalties to civil penalties aims to reduce unnecessary litigation and ease compliance burdens on businesses.

Corporate Social Responsibility (CSR) New CSR rules mandate stricter compliance, such as disclosing unspent CSR funds and adhering to impact assessments for large projects. Companies now need to ensure funds are allocated responsibly, reinforcing their commitment to social development.

Ease of Doing Business Initiatives like the Simplified Proforma for Incorporating Company Electronically (SPICe+) and online filings have made company registration seamless. Digital compliance tools such as e-adjudication and web-based regulatory filings enhance efficiency and accessibility.

Insolvency and Bankruptcy Code (IBC) Updates Recent amendments to the IBC focus on faster resolution processes and protection of creditors' rights. Pre-packaged insolvency resolution for MSMEs was introduced to safeguard smaller businesses while ensuring their recovery.

Data Privacy and SEBI Regulations Regulatory bodies like SEBI have tightened corporate governance norms for listed entities, while India’s upcoming Data Protection Act will have significant implications for companies handling sensitive data.

These changes reflect the government’s efforts to create a robust legal framework that supports business growth while maintaining accountability and transparency.

For expert legal consultation on corporate compliance, governance, or litigation, trust M K Singh Legal Services.

For legal consultation or assistance, connect with M K Singh Legal Services:

🌐 www.metrolegalexperts.in

📧 mksingh@metrolegalexperts.in

📞 +91 9811432933

📱 Social Media:

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Stay updated with M K Singh Legal Services for all your legal needs !

[onlawcourses]

The Insolvency and Bankruptcy Code (IBC), 2016, is a transformative legislation in India's financial and legal landscape. It streamlines the process of insolvency resolution, ensuring the timely revival of businesses and the fair settlement of creditor claims. Given the increasing importance of IBC, there is a growing demand for professionals equipped with specialized knowledge in this domain. Online law courses in IBC have emerged as a vital avenue for students, legal professionals, and corporate employees to develop a deep understanding of this critical legislation.

[vishvaslawoffices1]

NCLAT Lawyer in Delhi: Your Guide to Legal Expertise for Corporate and Insolvency Matters

When businesses in India face corporate disputes or insolvency challenges, turning to a seasoned NCLAT Lawyer in Delhi can be a critical step toward securing favorable outcomes. The National Company Law Appellate Tribunal (NCLAT) is a specialized tribunal that handles appeals against decisions made by the National Company Law Tribunal (NCLT), focusing on insolvency, corporate law, and related matters. Whether you're a corporate entity or an individual facing legal complexities in these areas, choosing the right lawyer in Delhi can significantly impact the resolution of your case.

In this article, we’ll delve into the significance of NCLAT, the role of a lawyer specializing in NCLAT cases, and how to choose the best NCLAT lawyer in Delhi to represent your interests.

Understanding NCLAT and Its Importance

The National Company Law Appellate Tribunal (NCLAT) is the highest appellate body for matters related to corporate disputes, insolvency proceedings, and company law in India. Established under the Insolvency and Bankruptcy Code (IBC), the NCLAT has the authority to hear appeals against the orders passed by the NCLT. Its decisions are crucial in shaping the legal landscape for companies, creditors, and stakeholders involved in financial distress.

The NCLAT handles several critical functions, such as:

- Appeals in Insolvency and Bankruptcy Cases: If a company or individual is dissatisfied with the NCLT’s ruling on insolvency proceedings, the NCLAT provides a forum for appeals.

- Corporate Governance Disputes: Issues related to shareholder disputes, fraud, mismanagement, and violations of company law are heard in the NCLAT.

- Regulation of Insolvency Professionals: The tribunal also addresses issues related to insolvency professionals, ensuring the smooth operation of insolvency proceedings.

Given the complexity of these issues, a skilled NCLAT lawyer in Delhi is necessary to navigate the intricacies of the tribunal’s procedures, argue your case effectively, and protect your legal rights.

Why You Need an NCLAT Lawyer in Delhi

Dealing with an appeal at the NCLAT level requires expertise in corporate law, insolvency law, and tribunal procedures. Here are a few reasons why hiring an NCLAT lawyer in Delhi is essential:

1. Expertise in Insolvency and Corporate Law: NCLAT cases often involve highly specialized areas of law. A lawyer with expertise in insolvency law, corporate governance, and bankruptcy procedures is crucial for presenting a strong case before the tribunal.

2. In-depth Knowledge of NCLAT Procedures: NCLAT follows specific legal procedures for filing appeals, submitting evidence, and representing clients. A lawyer familiar with these processes can streamline your case and avoid procedural errors that could harm your position.

3. Strategic Case Handling: NCLAT cases require an in-depth understanding of legal strategies, including legal precedents, case laws, and tribunal precedents. A qualified NCLAT lawyer can craft a strategy tailored to your case, enhancing your chances of success.

4. Effective Representation: Representation before the NCLAT demands strong advocacy skills. An experienced lawyer can present your arguments persuasively, cross-examine witnesses, and highlight crucial evidence, which can make a significant difference in the outcome of your case.

5. Timely and Proper Documentation: Filing an appeal with the NCLAT involves preparing extensive legal documents, including written submissions, affidavits, and supporting evidence. A skilled NCLAT lawyer ensures that all documentation is accurate, complete, and submitted on time.

Key Qualities of an Experienced NCLAT Lawyer in Delhi

When choosing an NCLAT lawyer in Delhi, it is important to look for specific qualities that will enhance your chances of success. Here are some of the essential traits to look for:

1. Specialized Knowledge in NCLAT and Corporate Law: The lawyer should have expertise in the laws governing corporate disputes, insolvency, and the functioning of the NCLAT. Their experience should include successfully handling appeals at the NCLAT level.

2. Proven Track Record: A lawyer with a proven track record of successful cases at the NCLAT is likely to offer the best chance of achieving a favorable outcome. You should ask for case studies or references to understand their experience and success rate.

3. Strong Analytical and Communication Skills: The ability to analyze complex legal issues and communicate them effectively is crucial in NCLAT proceedings. A good lawyer should be able to simplify complex legal arguments and present them in a clear and persuasive manner.

4. Client-Centered Approach: The best NCLAT lawyers prioritize the interests of their clients and offer tailored legal solutions. They should take the time to understand your specific situation and offer advice based on your needs and goals.

5. Timeliness and Efficiency: NCLAT cases often have strict timelines, and delays can significantly affect your case. A reliable lawyer will ensure that deadlines are met and work efficiently to avoid unnecessary delays.

How to Find the Best NCLAT Lawyer in Delhi

To find the right NCLAT lawyer in Delhi, consider the following steps:

1. Research Online: Start by researching NCLAT lawyers in Delhi through online directories, law firm websites, and reviews from previous clients. Many law firms have a dedicated section for NCLAT matters and showcase their expertise in handling corporate disputes and insolvency cases.

2. Check Qualifications and Experience: Ensure the lawyer has the relevant qualifications, certifications, and experience in handling NCLAT appeals. A lawyer with experience in both NCLT and NCLAT matters will be especially valuable.

3. Consult Multiple Lawyers: Don't settle for the first lawyer you find. Consult with multiple lawyers to gauge their expertise, communication style, and understanding of your case. This will help you make a well-informed decision.

4. Discuss Fees: Ensure that you have a clear understanding of the lawyer’s fee structure. Some lawyers may charge a fixed fee, while others may charge based on the complexity of the case.

5. Read Client Reviews: Look for client reviews and testimonials to understand how past clients have benefited from the lawyer's services. This can provide valuable insight into their ability to deliver results.

Conclusion

Navigating the complexities of an NCLAT case can be daunting, but with the right NCLAT lawyer in Delhi, you can rest assured that your case is in capable hands. Whether you’re dealing with insolvency, corporate governance disputes, or appeals against NCLT orders, a qualified lawyer can provide the expertise and strategic approach needed to succeed in the NCLAT.

By selecting a lawyer with the right qualifications, experience, and client-centered approach, you can improve your chances of achieving a favorable outcome in your NCLAT case. Make sure to invest time and effort in finding the right lawyer, as their expertise can make all the difference in your legal journey.

[tracedataresearch]

India Corporate Training Market to Witness Robust Growth with a Projected CAGR of 14% During 2024-2028

Korea SMEs and Startups Agency (KOSME) has introduced the Korean Corporate Competency Training Program, a specialized initiative designed to equip Indian university graduates with the skills needed to work in Korean companies. This program addresses the increasing need for cross-cultural awareness and corporate expertise as Korean businesses expand globally, with particular emphasis on strengthening their presence in the Indian market.

Focus will be on enhancing experiential learning through technologies like AR/VR, the Metaverse, and microlearning concepts. Courses on data and business analytics, AI-ML, cybersecurity, and cloud infrastructure are anticipated to be in high demand.

Rising Demand for Skill-Based Training: The Indian corporate training market is experiencing a surge in demand for skill-based programs, especially in technology, management, and soft skills. Companies are aligning their training strategies with government initiatives like Skill India and National Skill Development Corporation (NSDC) goals. These programs aim to address workforce competency gaps and enhance productivity. From a company’s perspective, upskilling boosts employee retention and efficiency. The government encourages collaborations between corporations and training institutions under Public-Private Partnership (PPP) models to strengthen the labor force and drive economic growth.

Increased Emphasis on ESG Training: Environmental, Social, and Governance (ESG) training is becoming a priority for Indian businesses to meet compliance and sustainability goals. Companies focus on sensitizing employees to sustainability practices, workplace diversity, and corporate governance. With increasing mandates from SEBI (Securities and Exchange Board of India) on ESG disclosures for listed companies, training helps in embedding ESG principles into business operations. The government’s emphasis on green policies, such as the National Action Plan on Climate Change (NAPCC), aligns with corporate strategies, making ESG training essential for maintaining competitive and regulatory edge.

Blended Learning Models: Corporations in India are adopting hybrid training models that combine classroom and digital learning. This trend aligns with the government’s Digital India initiative to promote technology in education. Blended models allow companies to balance cost-efficiency with effective learning outcomes. From an operational perspective, this approach offers scalability, enabling nationwide training for dispersed teams. The government push for improved internet connectivity through BharatNet plays a significant role in facilitating the growth of online training, particularly in semi-urban and rural areas.

Focus on Leadership and Governance Training: Indian companies are emphasizing leadership development programs to build governance capabilities in senior management. This trend is driven by the Companies Act, 2013, which mandates robust corporate governance structures, including board effectiveness and director responsibilities. Training in governance practices is critical for compliance and strategic decision-making. The government initiatives, such as the Insolvency and Bankruptcy Code (IBC), emphasize the need for well-trained leadership in handling business restructuring and resolution processes, ensuring companies remain resilient in a dynamic economic environment.

The report titled “India Corporate Training Market Outlook to 2029- By Market Structure (In-House and Outsourced Trainings), By Training Type (Technical Skills, Soft Skills, Compliance, and Leadership Development), By Industry Verticals (Finance, IT, Manufacturing, Healthcare, and Retail), By Organization Size” by TraceData Research said that the technical sector dominates the market growth as technical trainings are generally given to employees at the start of their professional journey in a company. Due to the pandemic, business operations were shifted to work from home model therefore many employees were on their own due to which they felt the need for technical skills. 

To Know More Details About the Sector, Please Follow the Link: -

India Corporate Training Market

Related Reports by Trace Data:

Indonesia Corporate Training Market Outlook to 2029

Malaysia Corporate Training Market Outlook to 2029

Contact Us: -

Mohit Kadian

support@tracedataresearch.com

+91-9266849840

[economics-around-you]

Company Law (CS Executive): In-Depth Guide for 2024 Exam 

 Company Law is one of the most crucial subjects for students pursuing the CS Executive course. It not only forms the basis for understanding corporate regulations and governance but also shapes the role of a Company Secretary in ensuring compliance with legal standards in organizations. This subject focuses on the Companies Act, 2013, and covers a wide range of topics, from company incorporation to corporate governance, CSR, and winding-up procedures. 

This detailed guide will help students prepare thoroughly for the Company Law paper in the CS Executive 2024 exam, while also outlining how Success Edge Academy can support students in their preparation journey. 

Detailed Syllabus for Company Law (CS Executive) 

Understanding the syllabus thoroughly is the first step toward excelling in Company Law. The syllabus is designed to give students a comprehensive knowledge of the legal framework governing companies. Let’s break down the syllabus into sections for easier understanding: 

1. Introduction to Company Law 

Development and Evolution: This section discusses the evolution of Company Law in India. Students must focus on the historical context that led to the Companies Act, 2013, and its amendments. 

The Companies Act, 2013: Detailed study of the significant provisions, amendments, and the relevance of the Act. 

Types of Companies: Public, Private, Government, and other categories, with focus on key differences in legal standing and requirements. 

2. Incorporation of Companies 

Procedure for Incorporation: In-depth study of steps involved in incorporating a company under The Companies Act, 2013. 

Memorandum and Articles of Association: Key provisions, contents, and procedures for alteration. 

Legal Doctrines: Understanding the Doctrine of Ultra Vires, Doctrine of Indoor Management, and Doctrine of Constructive Notice is crucial. 

Promoters: Roles, duties, and liabilities of promoters in forming a company. 

3. Share Capital and Debentures 

Types of Share Capital: Authorized, issued, subscribed, and paid-up capital. 

Issue of Shares: Procedures for the issue, transfer, transmission, and forfeiture of shares. 

Debentures: Types of debentures, issue procedures, redemption, and related regulations. 

4. Management and Administration 

Board of Directors: Structure of the board, appointment, removal, and resignation of directors. 

Roles and Responsibilities of Directors: Focus on the duties, powers, and liabilities of directors. 

Meetings: Rules governing Board Meetings, General Meetings, and Resolutions. 

Corporate Governance: Importance of governance and key provisions laid down in the Companies Act and SEBI guidelines. 

5. Corporate Social Responsibility (CSR) 

CSR Provisions: Specifics of Section 135 of the Companies Act. 

CSR Policy: Rules regarding formulation, reporting, and implementation of CSR activities. 

CSR Committee: Roles and functions of the CSR Committee and compliance requirements. 

6. Dividends, Accounts, and Audits 

Declaration of Dividends: Legal procedure for the declaration and distribution of dividends. 

Company Accounts: Maintenance of books of accounts, preparation of financial statements. 

Auditors: Procedures for the appointment of auditors, their responsibilities, and powers. 

7. Winding Up of Companies 

Types of Winding Up: Voluntary, compulsory, and other forms of winding-up under the Act. 

Role of Liquidators: Powers, duties, and responsibilities in the winding-up process. 

Insolvency and Bankruptcy Code (IBC): Importance of IBC, 2016, and its impact on winding-up procedures. 

8. Compromises, Arrangements, and Amalgamations 

Mergers and Acquisitions: Legal framework surrounding mergers, acquisitions, and demergers. 

Compromises and Arrangements: Procedural aspects of compromises between companies and creditors. 

Amalgamations: Legal requirements and procedural formalities for amalgamations. 

9. Oppression and Mismanagement 

Protection of Minority Shareholders: Rights available under the Companies Act for the prevention of oppression. 

National Company Law Tribunal (NCLT): Role of NCLT in handling cases of oppression and mismanagement. 

Exam Pattern for Company Law (CS Executive) 

The Company Law paper in the CS Executive exam is a mix of descriptive questions and case law applications. Students need to be well-versed in theory, but they also need to be able to apply their knowledge to real-life scenarios. 

Total Marks: 100 

Duration: 3 hours 

Types of Questions: Descriptive and practical case studies 

Weightage: 

Theoretical Concepts: ~40% 

Case Law Applications: ~60% 

Key Study Tips for Company Law 

Preparing for Company Law can seem daunting due to the vastness of the subject, but a strategic approach can make it manageable. Here are some study tips to help students ace this paper: 

1. Deep Dive into the Companies Act, 2013 

Thoroughly read each section of the Companies Act with a focus on incorporation, share capital, meetings, and winding-up. 

Keep updated with amendments to the Act, as the syllabus and exam questions often reflect recent legal changes. 

2. Case Laws and Applications 

Pay close attention to important case laws that illustrate the application of Company Law principles. Understanding how legal precedents are applied in real scenarios is vital for case-based questions. 

3. Summarize and Revise Key Sections 

Create concise notes or flashcards for quick revision of major sections like Board Meetings, Directors' duties, and winding up. This will help you revise quickly closer to the exam. 

4. Solve Past Year Papers 

Review past exam papers and identify patterns in the types of questions asked. Focus on understanding how questions are framed around case laws, practical applications, and theoretical concepts. 

5. Mock Tests and Time Management 

Enroll in mock tests that simulate real exam conditions. Practice completing questions within the time limit to manage your time effectively during the exam. 

6. Group Discussions and Peer Learning 

Participate in group discussions with fellow students. Discussing complex topics with others helps in better retention and understanding. 

7. Regular Revision 

Consistent revision of important topics is essential. Make a revision schedule that ensures you cover all the key topics multiple times before the exam. 

How Success Edge Academy Can Help You Ace Company Law 

At Success Edge Academy, we understand the challenges students face in mastering Company Law for the CS Executive exam. Here’s how we can support your preparation: 

Experienced Faculty: Our team includes expert faculty members with years of experience in teaching Company Law. Their in-depth knowledge helps students grasp complex legal provisions with ease. 

Structured Learning: We provide a well-structured syllabus plan that covers every aspect of Company Law, ensuring that students don’t miss out on any critical topics. 

Regular Assessments: Our regular tests and assessments help students track their progress and understand their areas of improvement. 

Practical Case Law Applications: We emphasize the practical application of Company Law through case laws, enabling students to tackle case-based questions confidently. 

Doubt-Solving Sessions: Dedicated doubt-clearing sessions allow students to resolve their queries and strengthen their understanding of difficult topics. 

Comprehensive Study Material: We provide up-to-date study materials, including the latest amendments and case laws, ensuring students have access to the best resources. 

With our focused and systematic approach, Success Edge Academy helps students build a solid foundation in Company Law, equipping them with the skills needed to succeed in the CS Executive exam. 

FAQs on Company Law (CS Executive) 

1. How important is Company Law in the CS Executive exam? 

Company Law is one of the core subjects in the CS Executive syllabus. It carries a total of 100 marks and focuses on providing a comprehensive understanding of the legal framework governing companies in India. 

2. What are the critical topics to focus on for Company Law? 

Key topics include Incorporation of Companies, Directors’ Duties and Responsibilities, Share Capital, Winding Up, Corporate Governance, and CSR. 

3. How can I effectively study case laws for Company Law? 

Focus on understanding the facts, legal principles, and outcomes of landmark cases. Practice writing answers that apply these case laws to hypothetical scenarios. 

4. How does Success Edge Academy help students with Company Law preparation? 

Success Edge Academy offers expert faculty, structured learning, regular assessments, and comprehensive study material, helping students prepare thoroughly for the CS Executive exam. 

Conclusion 

Mastering Company Law is essential for becoming a successful Company Secretary. With thorough preparation, regular practice, and expert guidance from Success Edge Academy, students can confidently 

[yourglobalexpansionpartner]

Navigating Economic Reforms: How They Influence Investment Decisions in India

India has become a global hotspot for investment, drawing attention from both domestic and international investors. As the economy continues to evolve, a critical factor influencing investment decisions is the series of economic reforms introduced by the Indian government. These reforms have reshaped the business landscape, making it essential for investors to understand their impact when planning to Invest in India.

The Role of Economic Reforms

India’s economic reforms aim to create a more open, competitive, and investment-friendly environment. Initiatives like the Goods and Services Tax (GST), the liberalization of FDI policies, and the implementation of the Insolvency and Bankruptcy Code (IBC) have streamlined processes, improved transparency, and bolstered investor confidence. These reforms are pivotal in reducing regulatory hurdles and making it easier for businesses to establish and scale in India.

The government's focus on digital transformation through programs like Digital India and Make in India has further enhanced India's attractiveness as an investment destination. These initiatives not only foster technological growth but also facilitate efficient business operations, allowing companies to tap into India's vast market potential more effectively.

Understanding the Reforms' Influence on Investment Decisions

For any investor looking to Invest in India, understanding these reforms is crucial. The GST, for example, has simplified the tax structure, reducing the complexity of doing business across multiple states. FDI reforms have allowed greater foreign ownership in sectors like retail, insurance, and defense, providing investors with more opportunities to enter the market. Moreover, the IBC offers a framework for resolving insolvency, which minimizes risks and offers better protection to creditors, a critical factor for foreign investors.

These reforms not only influence the ease of doing business but also shape long-term strategies. As India continues to focus on infrastructure development, energy sustainability, and manufacturing growth, sectors like renewable energy, real estate, and technology have become prime targets for investment. Investors can leverage these reforms to align their strategies with the country's growth trajectory.

The Role of Fox&Angel in Navigating India's Economic Reforms

At Fox&Angel, we understand the complexities of navigating economic reforms and their impact on investment decisions. Our expertise lies in providing investors with insights that help them make informed decisions. From understanding the intricacies of government policies to aligning your investment strategy with key growth sectors, we guide you every step of the way.

Conclusion

India's economic reforms have significantly transformed its investment landscape, offering unparalleled opportunities for growth. However, making the right investment decisions requires a deep understanding of these reforms and how they influence various sectors. Whether you're exploring FDI opportunities or seeking to expand in India's rapidly growing markets, navigating these changes is essential for success.

At Fox&Angel, we’re here to help you capitalize on India’s evolving economic landscape. Contact us today to explore how we can assist you in making smart investment decisions that align with India’s future.

Unlock the potential of investing in India—reach out to Fox&Angel now!

[jurishour]

Secured Creditors Hold Priority Over Government Tax Claims: Legal Precedents in India - Jurishour

Recent rulings by Indian courts have affirmed that secured creditors have priority over government tax claims during insolvency proceedings, underlining the significance of the Insolvency and Bankruptcy Code (IBC), 2016. Key judgments, including from the Bombay and Madras High Courts, have consistently supported the principle that secured creditors' rights, as enshrined in Section 31B of the IBC and Section 26E of the SARFAESI Act, take precedence over state claims for taxes such as sales tax, commercial tax, and income tax. These decisions uphold that secured creditors can recover debts through the sale of mortgaged assets before satisfying government dues. This emerging legal clarity strengthens the position of lenders during debt recovery and insolvency processes.

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[news365timesindia]

[ad_1] Paromita Das GG News Bureau New Delhi, 24th Dec. A Reversal of Opinions Raghuram Rajan, the former Governor of the Reserve Bank of India (RBI), has been a vocal critic of the Modi government during his tenure at the central bank. His frequent disagreements with the government, particularly over monetary policies and handling of the economy, earned him the tag of being a “darling of the opposition.” However, in a surprising turn of events, Rajan recently lauded the Modi administration for its effective management of Non-Performing Assets (NPAs), a key challenge for the Bharatiya banking system. This unexpected praise comes after years of sharp criticisms and is worthy of scrutiny, considering Rajan’s pivotal role in the banking reforms during his tenure at RBI. Understanding the NPA Crisis: The Historical Context: To comprehend the significance of Rajan’s recent remarks, it is essential to revisit the context of Bharat’s NPA crisis. NPAs are loans that have gone unpaid for an extended period, and their rise in the Bharatiya banking system has been a long-standing issue, primarily beginning after the global financial crisis of 2008. Rajan noted that projects funded by banks before the crisis started facing significant setbacks post-2008 due to factors such as corruption, delays in permits, and mismanagement. These factors caused a steep rise in NPAs, especially in public sector banks. Rajan’s 2015 Asset Quality Review (AQR) was a watershed moment in addressing this crisis. The AQR helped to clean up the balance sheets of banks by ensuring that bad loans were promptly identified, with the necessary provisioning made. According to Rajan, this was crucial for alleviating the growing financial insecurity surrounding public sector banks. He recalled how he took his proposal for an AQR and the end of the moratorium on bad loans to Arun Jaitley, the then Finance Minister, who approved it without hesitation. This marked a turning point in the fight against NPAs. The Modi Government’s Response, A Shift in NPA Management: Rajan’s praise for the Modi government’s handling of NPAs aligns with recent updates from Finance Minister Nirmala Sitharaman. According to her, between 2014 and 2023, the government’s initiatives helped recover more than ₹10 lakh crores from bad loans. The gross NPA ratio fell to a 12-year low of 2.8 percent by the end of the fiscal year 2024. These figures are a direct reflection of the government’s ongoing efforts to manage bad loans and prevent further escalation of the NPA crisis. Rajan acknowledges that the implementation of AQR was a pivotal step. However, the Modi government’s broader policy initiatives played a crucial role in reducing NPAs over time. One of the most significant steps was the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016. This law gave authorities the power to take control of defaulting companies from their promoters, thereby protecting the interests of creditors. Additionally, wilful defaulters were barred from participating in the resolution process, ensuring that there would be greater accountability. Additional Measures to Tackle NPAs: Alongside the IBC, the government took several other steps to address the NPA issue. One such measure was the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, allowing banks to auction the assets of defaulters. This was complemented by the establishment of the National Asset Reconstruction Company Limited (NARCL) to resolve stressed assets over ₹500 crore. The government also provided a ₹30,600 crore guarantee to back NARCL’s receipts, further enhancing the efficiency of the recovery process. Public sector banks were also restructured through the establishment of Stressed Asset Management Verticals, such as the one in the State Bank of India (SBI), to manage and recover loans more effectively. These verticals allowed banks to monitor loans more closely, ensuring that any potential defaults were caught early.

Moreover, the RBI implemented a system of Early Warning Signals (EWS) to trigger timely remedial actions for loans at risk of default. A Positive Outlook: Rajan’s Acknowledgment: Raghuram Rajan’s acknowledgment of the Modi government’s success in reducing NPAs is notable, especially considering his earlier critiques. He conceded that the government’s approach, including the AQR, the IBC, and other reforms, helped set the stage for the reduction in bad loans. As he put it, “Eventually the situation is back on track,” signifying a recovery after years of financial distress. Rajan’s perspective carries weight given his experience and expertise in managing the Bharatiya economy, and his remarks add credibility to the government’s claims of progress. Conclusion: The Long Road Ahead: While the reduction in NPAs under the Modi government is a significant achievement, experts agree that the work is far from over. The underlying issues that contribute to the creation of bad loans—such as poor project planning, delays in clearances, and systemic corruption—continue to be challenges for Bharat’s banking sector. Therefore, while Rajan’s praise is deserved, it also highlights the complexity of tackling NPAs and the need for continued vigilance. The government’s strategy of combining regulatory reforms, legal frameworks, and institutional restructuring has certainly yielded results. Yet, with Bharat’s banking sector still grappling with certain vulnerabilities, it is essential to keep refining these measures. Raghuram Rajan’s shift in stance reflects a recognition of these efforts, providing a balanced view of the Modi government’s handling of one of the most significant financial challenges in Bharat’s economic history. The post Raghuram Rajan’s Remark on Modi Government’s NPA Management: A Shift in Perspective appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[news365times]

[ad_1] Paromita Das GG News Bureau New Delhi, 24th Dec. A Reversal of Opinions Raghuram Rajan, the former Governor of the Reserve Bank of India (RBI), has been a vocal critic of the Modi government during his tenure at the central bank. His frequent disagreements with the government, particularly over monetary policies and handling of the economy, earned him the tag of being a “darling of the opposition.” However, in a surprising turn of events, Rajan recently lauded the Modi administration for its effective management of Non-Performing Assets (NPAs), a key challenge for the Bharatiya banking system. This unexpected praise comes after years of sharp criticisms and is worthy of scrutiny, considering Rajan’s pivotal role in the banking reforms during his tenure at RBI. Understanding the NPA Crisis: The Historical Context: To comprehend the significance of Rajan’s recent remarks, it is essential to revisit the context of Bharat’s NPA crisis. NPAs are loans that have gone unpaid for an extended period, and their rise in the Bharatiya banking system has been a long-standing issue, primarily beginning after the global financial crisis of 2008. Rajan noted that projects funded by banks before the crisis started facing significant setbacks post-2008 due to factors such as corruption, delays in permits, and mismanagement. These factors caused a steep rise in NPAs, especially in public sector banks. Rajan’s 2015 Asset Quality Review (AQR) was a watershed moment in addressing this crisis. The AQR helped to clean up the balance sheets of banks by ensuring that bad loans were promptly identified, with the necessary provisioning made. According to Rajan, this was crucial for alleviating the growing financial insecurity surrounding public sector banks. He recalled how he took his proposal for an AQR and the end of the moratorium on bad loans to Arun Jaitley, the then Finance Minister, who approved it without hesitation. This marked a turning point in the fight against NPAs. The Modi Government’s Response, A Shift in NPA Management: Rajan’s praise for the Modi government’s handling of NPAs aligns with recent updates from Finance Minister Nirmala Sitharaman. According to her, between 2014 and 2023, the government’s initiatives helped recover more than ₹10 lakh crores from bad loans. The gross NPA ratio fell to a 12-year low of 2.8 percent by the end of the fiscal year 2024. These figures are a direct reflection of the government’s ongoing efforts to manage bad loans and prevent further escalation of the NPA crisis. Rajan acknowledges that the implementation of AQR was a pivotal step. However, the Modi government’s broader policy initiatives played a crucial role in reducing NPAs over time. One of the most significant steps was the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016. This law gave authorities the power to take control of defaulting companies from their promoters, thereby protecting the interests of creditors. Additionally, wilful defaulters were barred from participating in the resolution process, ensuring that there would be greater accountability. Additional Measures to Tackle NPAs: Alongside the IBC, the government took several other steps to address the NPA issue. One such measure was the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, allowing banks to auction the assets of defaulters. This was complemented by the establishment of the National Asset Reconstruction Company Limited (NARCL) to resolve stressed assets over ₹500 crore. The government also provided a ₹30,600 crore guarantee to back NARCL’s receipts, further enhancing the efficiency of the recovery process. Public sector banks were also restructured through the establishment of Stressed Asset Management Verticals, such as the one in the State Bank of India (SBI), to manage and recover loans more effectively. These verticals allowed banks to monitor loans more closely, ensuring that any potential defaults were caught early.

Moreover, the RBI implemented a system of Early Warning Signals (EWS) to trigger timely remedial actions for loans at risk of default. A Positive Outlook: Rajan’s Acknowledgment: Raghuram Rajan’s acknowledgment of the Modi government’s success in reducing NPAs is notable, especially considering his earlier critiques. He conceded that the government’s approach, including the AQR, the IBC, and other reforms, helped set the stage for the reduction in bad loans. As he put it, “Eventually the situation is back on track,” signifying a recovery after years of financial distress. Rajan’s perspective carries weight given his experience and expertise in managing the Bharatiya economy, and his remarks add credibility to the government’s claims of progress. Conclusion: The Long Road Ahead: While the reduction in NPAs under the Modi government is a significant achievement, experts agree that the work is far from over. The underlying issues that contribute to the creation of bad loans—such as poor project planning, delays in clearances, and systemic corruption—continue to be challenges for Bharat’s banking sector. Therefore, while Rajan’s praise is deserved, it also highlights the complexity of tackling NPAs and the need for continued vigilance. The government’s strategy of combining regulatory reforms, legal frameworks, and institutional restructuring has certainly yielded results. Yet, with Bharat’s banking sector still grappling with certain vulnerabilities, it is essential to keep refining these measures. Raghuram Rajan’s shift in stance reflects a recognition of these efforts, providing a balanced view of the Modi government’s handling of one of the most significant financial challenges in Bharat’s economic history. The post Raghuram Rajan’s Remark on Modi Government’s NPA Management: A Shift in Perspective appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[acquisory]

Insolvency and Bankruptcy Code — IBC-BOON OR BANE

Introduction

The Insolvency and Bankruptcy Code (IBC), 2016 has been enacted to merge the existing laws related to insolvency and bankruptcy. The IBC involves standard steps which is viable and understandable. So, everyone, be it creditors, debtors, companies, or shareholders etc. shall have a standard perform for any matters relating to insolvency.

“The IBC has been a real game changer in the Indian economy’s business reform initiatives in the last twenty five years. Ease of doing business is ironically the base premise for enacting the comprehensive Code to exit from the business.”

The IBC has made a spectacular progress in short span. The recent orders issued by the Adjudicating Authorities are beginning to have profound impact on defaulting business owners as the message is loud and clear “settle dues or cede control”.

Why was IBC enacted?

Initially there was Presidency Towns Insolvency Acts, 1909 which was applicable in Kolkata, Chennai and Mumbai and the Provincial Insolvency Act 1920 for the rest of India, for regulating the insolvency laws. The Act applied to individuals and partnerships but exempted corporations from within its ambit. Post Independence, the bankruptcy and insolvency were specified in Constitution and with the passage of time there were numerous acts which governed Insolvency and bankruptcy issues such as the Sick Industrial Companies (special provision) Act, 1985 (“SICA”), SARFAESI Act, 2002, the Recovery of Debts due to Banks and financial institutions Act, 1993 (“RDDBFI Act”), Companies Act, 1956 as well as Companies act, 2013.

But these regulations have not yielded satisfactory results. These regimes were high fragmented, borne out of multiple judicial forums resulting in lack of clarity and certainty of jurisdiction. Further, we had various adjudicatory bodies/Tribunals to deal with such issues and matters under different Acts stated above.

So, this led to the unclear knowledge about the authority as to whom the parties should approach in the related matters. Hence, this resulted in overlapping of decisions. There was no common regulatory authority to regulate the rights of the secured or unsecured creditors, employees etc. or to determine the priority of their claims. Large number of stressed assets such as NPAs with low recovery rates due to a lack of enabling environment for the enforcement of creditor’s rights. Moreover there was no adequate or credible data regarding the assets, indebtedness etc. of companies which further heighten the problems. Hence large number of legislations and non-statutory guidelines have made the recovery of debt a complex and time consuming process.

The IBC is a welcome overhaul which has directly addressed in resolving the insolvency and bankruptcy issues of corporates and simultaneously serving creditors and public financial institutions by helping them in recovery of bad and distress loans and ultimately tackling Non Performing Assets. The Main objective of Code is distribution of the effects of a debtor in the most expeditious, equal and economical mode. The Code lays down the complete procedure of Insolvency Resolution process which involves collating claims and reviewing the requisite financial and other relevant records of the company. The introduction of this Code has brought in ample opportunities for professionals ranging from being appointed as official liquidator to managing the financial health of corporates in case of distressed assets.

Present Scenario

Today we have IBC, 2016, which provides a…

Read more: https://www.acquisory.com/ArticleDetails/52/Insolvency-and-Bankruptcy-Code--IBC-BOON-OR-BANE