tag:blogger.com,1999:blog-41220627192742346382024-03-13T09:20:47.650-07:00Clear Perspective & Independent Views This blog is written, updated & uploaded exclusively by Gaurav Pingle, Company Secretary. Topics of this blog relate to Corporate Laws, analysis of an amendment, discussion on consultation paper, review of books on Law and Finance. Some views and thoughts about teaching and learning experience, profession, etc.
Views are independent. Objective is to bring a clear perspective about the topics of discussion.
Blog written and updated as per time availability, commitments & convenience.Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-4122062719274234638.post-2766491266427734272022-02-21T18:16:00.003-08:002022-02-21T18:16:58.831-08:00Certain provisions of Cos. Act, 2013 applicable to LLP<p style="text-align: justify;">MCA has issued a Notification (dated Feb. 11, 2022) and has stated that certain provisions of Cos. Act, 2013 will be applicable to LLP (with modifications). This post relates to analysis of the said notification:</p><p style="text-align: justify;">Provisions of maintaining register of SBO now applies to LLP. By the notification ‘company’ is substituted by ‘LLP’, ‘member’ is substituted by ‘partner’, ‘officer’ is substituted by ‘partner/designated partner’. Complex provisions of SBO are made so easily applicable for LLPs!! Without such substitution of words, MCA ought to have drafted a separate provision drafted for LLP as the amount capital contribution could be different than the voting rights in LLP. Not clear from MCA notification, whether Cos. SBO Rules are applicable for LLPs. Also, provisions similar to section 89(10) of Cos. Act, 2013 should have been applicable to LLPs.</p><p style="text-align: justify;">Provisions of disqualification for appointment of directors now applies to designated partners of the LLPs. Sub-section (1) and (2) of section 164 of the Companies Act, 2013 are now applicable to LLPs. No reference to other provisions applicable to LLPs.</p><p style="text-align: justify;">Provisions of number of directorships for directors in company are now applicable for number of LLPs in which a person can be DP (i.e. 20). There is no restriction for a person to be a partner in no. of LLPs.</p><p style="text-align: justify;">Provisions relating to vacation of office of director are not applicable for DP of LLP. There is also a possibility provided where all DPs of LLP vacate their office (similar to Co. Act, 2013).</p><p style="text-align: justify;">Central Govt. may if it is satisfied direct inspection of books and papers of LLP by inspector appointed by it for the purpose. The ROC or Inspector making an inspection or inquiry shall have all the powers as are vested in a civil suit in respect of certain matters (as prescribed).</p><p style="text-align: justify;">Govt. has also introduced a provision for ‘Appeal to NCLAT’ in case of dissolution of LLP under section 75 of the LLP Act.</p><p style="text-align: justify;">Provisions of section 439 of Cos. Act (relating to ‘offenses to be non-cognizable’) are now applicable to LLP with certain modifications.</p><p style="text-align: justify;">Basically, all these provisions applicable to LLPs could have been drafted and made applicable to LLPs instead of substitution of words/phrases. Also, the LLP Act ought to have been amended for such significant amendments. There could have been many provisions of the Cos. Act, 2013 that could have been made applicable to LLPs. There ought to have been some clarity in applicability of provisions relating to RPTs under Cos. Act, 2013 to transaction between Co. and LLP.</p>Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-85323730657620710172022-02-21T04:05:00.001-08:002022-02-21T18:17:23.798-08:00Amendments to LLP Rules, 2009 - Adjudication of penalties & its impact.<p style="text-align: justify;"> Last week, the LLP Rules, 2009 were amended (effective from April 1, 2022). The amendments are quite significant. One of the amendments relates to adjudication of penalties. Provisions are a bit similar to adjudication under the Cos. Act, 2013. These provisions in the Rules are to be read with the penal provisions under the LLP Act. The amendment Rules states that the requirement of submission of replies in electronic mode shall become mandatory after creation of e-adjudication platform. Amendment to LLP Rules also provide for appeal against order of adjudicating officer i.e. to Regional Director having jurisdiction.</p><p style="text-align: justify;">Another important amendment to the Rules is a change in the filing fees by LLP for filing, registering, or recording any document, form, statement, notice, Statement of Accounts and Solvency, annual return and an application along with the statement for conversion of a firm or a private co. or an unlisted public co. into LLP. Different statutory fees for Small LLPs and other than Small LLPs.</p><p style="text-align: justify;">Changes proposed w.r.t. the name resembling Trademark and remedies.</p><p style="text-align: justify;">Also, quite a few provisions of Cos. Act are now applicable to LLPs (will share my analysis on this soon). The provisions of LLP (Amendment) Act are also notified.</p><p style="text-align: justify;">My views: For India Inc., 2022 is a year for adjudication of penalties under Cos. Act and LLP Act, both. For Cos., the process has already started. LLP Act and Rules gives necessary powers to initiate adjudication proceedings for non-compliances. The orders for LLPs would be available on the MCA website. Just like Cos., now the compliances for LLPs would be required to be taken seriously. It is now not only about paying hefty annual filing fees for LLPs. However, there should be some rationale (justified in writing) in initiating action against LLP for the non-compliances and also there should be specific parameters for imposing penalties. Parameters could be capital contribution, turnover of LLP, whether public interest is affected, nature of non-compliance, etc. Otherwise, instead of promoting compliance, such adjudication proceedings would be harassment for LLPs (presently, the case is for Cos.).</p>Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-39101755464016637662022-02-14T10:32:00.002-08:002022-02-14T10:32:22.390-08:00My observations on MCA directing Cos. to furnish CSR Report in e-Form CSR-2:<p>MCA has issued a notification and amended Companies (Accounts) Rule, 2014. MCA has directed every Co. (to whom CSR provisions are applicable) to furnish a report on CSR in e-Form CSR-2 to the ROC for the preceding year (2020-2021). For FY 2020-2021, e-Form CSR – 2 shall be filed separately on or before March 31, 2022.</p><p>My observations (after going through the notification): Very precise and micro-details asked by the MCA about the compliance of section 135 of the Act and Rules. After going through the Form, it seems that the Rules have been converted into an e-Form. Some extra financial information is also asked by the MCA. This means that Cos. have to take CSR provisions very seriously from the perspective of compliance. The form has no certification of practising professional. The e-Form will require a lot of co-ordination between CS Dept., CSR Dept. and finance dept. (at least for the first return).</p><p>Good for ESG consultants and analyst. a lot of sorted information.</p>Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-86615825469388392462022-02-14T10:29:00.004-08:002022-02-14T10:29:57.267-08:00SEBI’s rules governing related party transactions requires immediate amendment<p style="text-align: center;"><span style="font-family: times;"><b>SEBI’s rules governing related party transactions requires immediate amendment</b></span></p><p><span style="font-family: times;"><br /></span></p><p><span style="font-family: times;">Business Standard article titled 'India Inc sees red over new rules governing related party
transactions': </span><a href="https://www.business-standard.com/article/markets/india-inc-sees-red-over-new-rules-governing-related-party-transactions-122021100437_1.html" style="font-family: times;">https://www.business-standard.com/article/markets/india-inc-sees-red-over-new-rules-governing-related-party-transactions-122021100437_1.html</a></p>
<p class="MsoNormal"><span style="font-family: times;"><br /></span></p><p class="MsoNormal"><span style="font-family: times;">3 months back, when the SEBI board approved the proposal, I
had mentioned that RPT amendments are made extremely stringent and would
require another round of amendment.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: times;">In fact, on the SEBI consultation paper on RPTs, I had
written an article titled - Regulating ‘unrelated party transactions’ under the
provisions of ‘related party transactions’.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: times;">Various industry and business associations are now taking
efforts and seeking amendments to the SEBI regulations. Amendments would now
take place in due course.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: times;">Interestingly, everything other than harmonization of
company law provisions and SEBI regulations is being done. Not sure, if this is
ease of doing business.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: times;">Tough days for listed entities, compliance officers and
secretarial auditors.<o:p></o:p></span></p>
<span style="font-size: 11pt; line-height: 107%;"><span style="font-family: times;">My LinkedIn <a href="https://www.linkedin.com/posts/gaurav-pingle-3a4aa417_sebi-notifies-new-rules-governing-related-party-activity-6864776353942691840-_iM0/">post</a>
for reference:</span></span>Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-22716922085734376082022-01-11T11:10:00.001-08:002022-01-11T11:13:34.804-08:00<p style="text-align: center;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiggJ_TpBeRaAHFEIfZ7yGqGB6IlwdxI7_7ZMJ6Ps1KhfZZlacSviDIQVRPiQKh_jOl_0y_8rWmDbUjZQxMy2PMaRMCmzymMsklw7ll3ZLSkjbKAezB4CMzU-8C5sVCVvo6wMD7Q1EgnOzOA2ohQJ4QjlBVkBAAKOyygmwXo3KEVS5i9iAjknEQ8kFSUQ=s499" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="499" data-original-width="326" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEiggJ_TpBeRaAHFEIfZ7yGqGB6IlwdxI7_7ZMJ6Ps1KhfZZlacSviDIQVRPiQKh_jOl_0y_8rWmDbUjZQxMy2PMaRMCmzymMsklw7ll3ZLSkjbKAezB4CMzU-8C5sVCVvo6wMD7Q1EgnOzOA2ohQJ4QjlBVkBAAKOyygmwXo3KEVS5i9iAjknEQ8kFSUQ=s320" width="209" /></a></div><br /> <b style="text-align: center;"><span style="font-family: "Times New Roman",serif; font-size: 16pt; line-height: 107%;">Book
Review – Let’s Talk Money by Monika Halan</span></b><p></p>
<p align="center" class="MsoNormal" style="margin-bottom: 0cm; text-align: center;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">By
Gaurav Pingle, Practising Company Secretary.<o:p></o:p></span></p>
<p align="center" class="MsoNormal" style="margin-bottom: 0cm; text-align: center;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">To
begin with, there are many books on investing, personal finance, insurances,
mutual funds, etc. However, not all the books fascinate a common man to read
it. The reason could be legal jargon, technical concepts, statistical
information, graphs/charts, discussion on macro-economic factors, global
factors, financial crises, etc. There are very few books in simple language on
investing and personal finance that address important questions of common man. <b>‘Let’s
Talk Money’ </b>by<b> Ms. Monika Halan</b> is one such unique book. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">The
book covers various topics of investing and personal finance which ultimately
empowers readers in taking important decisions relating to his investments. The
book is written in very simple English language (which has been further
translated into many vernacular languages in India). The simplicity of language
makes the book as ‘finance for non-finance’. Even software engineer or
electrical engineer or doctor or an architect (non-commerce professionals, as
they are not taught personal finance as part of their academic course) will
find this book interesting and relevant. The book is a practical guide and
helps the reader to take informed decisions relating to personal finance.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">The
author has given many practical examples of her friends and relatives, which
makes the book very relatable to the readers. The author doesn’t recommend the use
of any spreadsheets or complex calculations, etc. In fact, the author empowers
the readers in asking right question to right people about financial product. The
book is a conversation about money. The book also empowers common man in taking
unbiased financial decisions. At relevant places in the book, the author has
also recommended to take help of financial planner.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">217-pages
book has 14 chapters. At the end of each chapter, author has summarised important
action points or preliminary questions to be asked by the reader and important financial
ratios discussed in few chapter (e.g. living cost vis-à-vis take-home income,
EMI payouts vis-à-vis take-home income, savings vis-à-vis take-home income,
etc.). The book is helpful for employed as well as self-employed professional
and even for students.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">The
author has explained the concept of ‘money box’ in detail with practical tips
for the readers. ‘Money Box’ helps us properly maintain the cash flow system,
monitoring income and expenses, and investments on regular basis. ‘Emergency
Fund’ – its importance, way to maintaining funds, amount, etc. has also been
explained in a separate chapter in the book. There is a detailed discussion on
medical cover, types policies, premiums, benefits, important questions to be
asked to an insurance agent for getting the right policy. In a separate
chapter, the author explains the need and importance of life cover. There is a
detailed discussion on investment (+) life cover or only life cover. There is
reference to coverage, amount of premium, time of buying the policy, taxation
aspect, etc. In 6</span><sup style="font-family: "Times New Roman", serif;">th</sup><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> Chapter, the author now discusses ‘investing’.
The author suggests the reader to note their short term, medium term and long-term
investment goals based on which investments can be classified.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">In
the chapter titled as ‘let’s de-jargon investing’, the author has explained
investment products in very simple language. The investment products include
debt, gold, real estate, equity, index funds, etc. The author has given some important
rules of equity investing, which includes: patience, risk, alternative option, lock-in,
continuous education by reading good material on personal finance.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">The
chapter on Mutual Funds explains the concepts, legal structure, ‘safety’, kinds
of funds, NAV, growth vs. dividend options, how does MFs make money, direct
plan, systematic investment plan, etc. In the Chapter titled ‘putting it all
together’, the author explains the parameters on which investment-oriented
financial products must be evaluated, which includes: cost of investing, returns,
lock-in, cost to exit early, holding period, taxes. The chapter concludes with a
discussion on ‘asset allocation’ – a very important concept in investing.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">There
is a separate chapter on ‘retirement’. Taking into consideration the
possibility of change in financial needs/requirements, and the plan, the author
has suggested a review of goals on periodical basis. Without going much in
legal jargon, the author has explained the importance of Wills and prescribed
Do’s and Don’ts in preparation of Will.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">In
the last chapter, the author discusses and explains the factors that ‘kills the
money box’ – the concept (‘money box’) that was discussed in the first chapter.
Some of the factors are spending too much, high cost of borrowing on credit
cards, investing in multi-level marketing schemes, investments in high-risk
IPOs, bitcoins, etc.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">After
reading the book, the reader will be able to organise his/her finances in a
rational manner. The book will help the reader to build a system and is not a
‘single shot’ solution for personal finance. It is also not a get-rich-quick
book but a book that will develop good habits and discipline which will
ultimately make us more confident about our investments. The book has been
revised and updated with financial lessons from Covid-19.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">In
my view, everyone should read the book – </span><b style="font-family: "Times New Roman", serif; font-size: 12pt;"><a href="https://www.amazon.in/Lets-Talk-Money-Youve-Worked/dp/9352779398">Let’s
Talk Money</a></b><span style="font-family: "Times New Roman", serif; font-size: 12pt;">. The book should also be basic reading material for all graduation
courses in India. This would significantly improve the financial literacy,
which is also the objective of the author. It is a book that empowers readers
in taking important financial decisions in unbiased manner.</span></p>
<p class="MsoNormal" style="margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;"><b><i>Amazon
Link:</i></b> </span><a href="https://www.amazon.in/Lets-Talk-Money-Youve-Worked/dp/9352779398" style="font-family: "Times New Roman", serif; font-size: 12pt;">https://www.amazon.in/Lets-Talk-Money-Youve-Worked/dp/9352779398</a></p>Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com3tag:blogger.com,1999:blog-4122062719274234638.post-41985410581292243432022-01-10T00:33:00.000-08:002022-01-10T00:33:02.750-08:00Book Review - CSR, ESG & Charitable Institutions - authored by Dr. KS Ravichandran<p> </p><p align="center" class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: center;"><b></b></p><div class="separator" style="clear: both; text-align: center;"><b><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgYOtWpABBR5WP6cfrvDmkytB6jMqHFoNS3mxRos-po0pkyxcUc847CqpOGjOQvoqG1qO_miCQgShqiaw3qhalCTPwxSacCuLW5z_hiUymN2xzzdrjA4DNR82vATgVoguLCOn7VeMGWedjyJl3yhNcSUGaGr37K1T5Rtzhb1lGp8GVKhXsiJV1BQSyvXA=s960" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="960" data-original-width="636" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEgYOtWpABBR5WP6cfrvDmkytB6jMqHFoNS3mxRos-po0pkyxcUc847CqpOGjOQvoqG1qO_miCQgShqiaw3qhalCTPwxSacCuLW5z_hiUymN2xzzdrjA4DNR82vATgVoguLCOn7VeMGWedjyJl3yhNcSUGaGr37K1T5Rtzhb1lGp8GVKhXsiJV1BQSyvXA=s320" width="212" /></a></b></div><b><br /><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 115%;"><br /></span></b><p></p><p align="center" class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: center;"><b><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 115%;">CSR, ESG & Charitable Institutions authored by Dr.
KS Ravichandran</span></b></p>
<p align="center" class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: center;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"><i>Book review by Gaurav Pingle, Practising Company
Secretary</i><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Along
with Related Party Transactions & Independent Directors, Corporate Social
Responsibility (CSR) has been one of the most deliberated concepts of the
Companies Act, 2013. Interestingly, CSR (section 135 of the Companies Act, 2013
and CSR Rules) is also one of the most amended provisions. The book (published
by Lexis Nexis) titled – </span><b style="font-family: "Times New Roman", serif; font-size: 12pt;">CSR, ESG & Charitable Institutions</b><span style="font-family: "Times New Roman", serif; font-size: 12pt;">,
authored by </span><b style="font-family: "Times New Roman", serif; font-size: 12pt;">Dr. KS Ravichandran</b><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> helps the readers in understanding the
concepts of CSR, Environmental, Social and Governance (ESG) reporting practices
and Charitable Institutions.</span></p><p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">This
book provides 360-degree perspective of CSR. The author has explained the
concepts in very simple language, which would be very helpful for corporate law
professionals and students pursuing CS/CA/CMA course or students of law school
and management institutions. The discussion is not only about company law but
also, about foreign exchange laws, foreign contribution regulation law, income
tax law and accounting practices.</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"><br /></span></i></p><p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">Philosophy
of CSR:</span></i><span style="font-family: "Times New Roman", serif; font-size: 12pt; line-height: 115%;"> Initially, the author has discussed in detail nine
principles that constitute the social responsibility of the company (as
provided in National Voluntary Guidelines on Social, Environmental and Economic
Responsibilities of Business). At necessary places, the author has given
reference to the practical application of the said principles. He has also
given practical and latest examples of unethical and undesirable corporate
practices (e.g. Volkswagen, Mitsubishi, Ranbaxy, Johnson & Johnson, etc.).
The author has also given references and details of the CSR initiatives at
Paris, CSR principles in Indonesia, OECD principles on CSR, etc. By reading the
first chapter, the reader gets a global outlook, ‘principle-based’ approach and
not just as compliance-oriented perspective.</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">ESG
reporting practices:</span></i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"> After discussing the concept of ESG, the
author has presented a thorough study of ESG activities of top 50 listed companies.
This study will be helpful in understating the effectiveness of ESG in India.
The author has concluded this important chapter by stating that “<i>it is
essential to note that the concept of business responsibility and
sustainability reporting, introduced by SEBI under the provisions of LODR
Regulations has brought much needed changes to bring a lot of thrust on the
significance of Socio-Enviro Governance</i>”</span><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">CSR
& CSR expenditure:</span></i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"> There is a detailed discussion on
the provisions of section 135 of the Companies Act and the CSR Rules made there
under. There is detailed analysis of the said provisions, accounting aspects,
accounting of CSR assets, grants received, disclosure in financial statements,
audit and action for fraud, falsification of books of accounts. This discussion
will help compliance officers, finance heads and accountants to understand and
apply the said provisions.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">CSR
Vehicles:</span></i><span style="font-family: "Times New Roman", serif; font-size: 12pt; line-height: 115%;"> There are 3 separate chapters on CSR vehicles, which
covers section 8 companies, trusts and societies. There is detailed discussion
on grant of license to section 8 companies, grounds of revocation, corporate
restructuring in such entities, etc. There is also detailed discussion on establishment
of societies, registration requirements, procedural & administrative aspect
of societies, de facto doctrine & legal status of societies as not body
corporate. On the trust as CSR vehicle, after explaining the concepts of public
trusts and private trust, the author has discussed in detail provisions
relating to duties, authorities, general powers & rights of trustees, etc.
There is detailed discussion on other important concepts of trust law, which
becomes relevant when promoters of company / social entrepreneurs decide to set
up a trust for CSR activities.</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">Income
Tax aspect of CSR:</span></i><span style="font-family: "Times New Roman", serif; font-size: 12pt; line-height: 115%;"> In a separate chapter, the author has
also discussed the procedure and critical aspects of registration of trusts
under the Income Tax Act, 1961 and exemptions from income tax. There is also a
detailed discussion on section 12A of the Income Tax Act along with
registration procedure, factors considered by prescribed authority, conditions
for being entitled to exemption under section 11 and 12 of Income Tax Act. In a
separate chapter, the author explains the benefits of contributions to funds,
trusts and Institutions registered under section 80G of Income Tax Act. There
is clause by clause analysis of Section 80G of Income Tax Act. The author has also
analyzed in the detail the taxation aspects of CSR expenditure (under section
30 to 36 of Income Tax Act).</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">Foreign
contributions as CSR:</span></i><span style="font-family: "Times New Roman", serif; font-size: 12pt; line-height: 115%;"> There is a separate chapter and detailed
discussion on CSR vis-a-vis Foreign Contribution Regulation Act, 2010. There
section-wise commentary on the said Act. This will be helpful for the readers
who are connected with companies accepting foreign donations. There are
references to notifications issued by the Ministry of Home Affairs.</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">CSR
spend pattern analysis:</span></i><span style="font-family: "Times New Roman", serif; font-size: 12pt; line-height: 115%;"> The author has also presented a
study of CSR spend pattern analysis. Top 50 listed companies are considered by
the author for this study. The statistical analysis relates to applicability of
CSR provisions by average threshold, analysis of CSR required to be spent,
actually spent and unspent CSR in 3 financial years, amount spent on various
categories of CSR activities during last 3 FYs, amount spent on most preferred
and least preferred categories of CSR activities, CSR amount spent on funds
specified in Schedule VII in 3 FYs. The author has also presented detailed
statistics and analysis on amount spent directly and amount spent on CSR
activities through implementation agencies in 3 FYs. After every statistical
information and presentation, author has provided his analysis and views on the
same. There is detailed discussion on the findings of such research and
statistical information. This will be helpful for the Government agencies/
departments in further refining, amending and implementing CSR provisions
effectively.</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">In
the book, the author has also discussed 100 FAQs on CSR provisions. The answers
are not simply – yes or no. But there is a short discussion on the relevant
question and references to the provisions of the Companies Act, CSR Rules, MCA
Circulars, etc. The FAQs covers discussion on the critical questions w.r.t. CSR
applicability, spending, reporting, calculation of net profits, nature of
expenditure included and excluded in CSR spending, coverage of policy, CSR
activities vis-à-vis CSR policy, approval process, role of board of directors /
CSR committee, corporate restructuring and applicability of CSR provisions, etc.
All these questions are relevant and the replies / answers to the same are researched-based
and practical. Some of the important questions relates to: frequency of
meetings of CSR committee, whether systems required for monitoring CSR
expenditure, consequences of the failure to undertake CSR activities, including
at least one KMP as member of CSR committee, whether creating awareness
constitutes CSR activity, display of CSR activities on website, mandatory
requirement of 3 years track record, reference to various MCA Circulars in
relation to MCA notification dated January 22, 2021, etc.</span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">For
the benefit of readers, the author has given a model memorandum of association
and articles of association of a section 8 company for undertaking CSR
activities and project report. There is also a model trust deed for undertaking
CSR activities.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 115%; margin-bottom: 0cm; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">The
overall deliberations in the book would be useful to professionals, directors,
officers, trustees, office bearers of NGOs, social entrepreneurs, academicians,
Government officers, law makers, students, etc. Every reader will get a
different and unique experience on CSR. In my view, every corporate law
professional and student must have this </span><a href="https://www.amazon.in/CSR-ESG-Charitable-Institutions-Vol/dp/9391211283"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;">book</span></a><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 115%;"> for
having a global and broader perspective of CSR, ESG & Charitable
Institutions.<o:p></o:p></span></p>Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com5Pune, Maharashtra, India18.5204303 73.8567437-9.7898035361788445 38.700493699999996 46.830664136178846 109.0129937tag:blogger.com,1999:blog-4122062719274234638.post-4112990494211046992019-12-19T04:46:00.002-08:002019-12-19T05:07:55.627-08:00Book Review - Company Law for Private Companies [Marathi Edition]<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-size: large;">Book Review</span></b></div>
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<b><span style="font-size: large;">Company Law for Private Companies [Marathi Edition]</span></b></div>
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Shri. Mahesh Janardhan Risbud, Practising Company Secretary, Pune has authored a book on Company Law in Marathi Language. The book covers compliances and procedures for Private Companies and also covers a separate chapter on Limited Liability Partnerships (‘LLP’).</div>
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Considering the convenience of decision making, Private Companies – as a form of business organisation is preferred by many businessmen and entrepreneurs. In a private company, the minimum number of directors and shareholders are two. Generally, the decisions are taken mutually by the two directors & shareholders. In private companies, it is very convenient and cost-effective process to call and conduct a meeting of directors and shareholders and take the necessary decisions. Also, private companies are exempted from compliances of strict regulations under the Companies Act.</div>
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Under the Companies Act, 1956, there were specific exemptions given to private companies w.r.t. calling of meetings, directors / directors relative funding the private companies, drafting the Articles of Association of the company, disclosures to the shareholders and Government, etc.</div>
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Under the Companies Act, 2013, there were very few exemptions given to private companies. With an objective of ‘ease of doing business’ and promote entrepreneurship, the Government has issued several notifications and introduced certain exemptions for private companies.</div>
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The book ‘Company Law for Private Companies’ authored by Shri. Mahesh Janardhan Risbud is a compilation of the relevant provisions for private companies in Marathi language. The author has explained the provisions of the Companies Act and LLP Act is simple and lucid language. Initially, the author has explained the concept of ‘company’, its features and advantages. This part of the book will help the businessmen and entrepreneurs to decide whether to incorporate a partnership firm or company. The author has also explained different types and classes of companies, e.g. One Person company, private companies, companies with charitable objects, small companies, start-ups, etc.</div>
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Considering that the reader has decided to incorporate a company, the author then provides a detailed process for its incorporation. In simple language, he explains the process of selecting the name of the company, online application and its approval. Then he explains the Memorandum of Association and Articles of Association, which are the constitution documents of the company. Recently, the Govt. has re-introduced a concept of ‘commencement of business’, wherein the promoters are required to report to the Govt. about their infusion of share capital in the company after its incorporation. The author has rightly captured the latest amendment which would ensure timely compliance of the new regulation by business and entrepreneurs.</div>
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The directors are responsible for day-to-day functioning of the company. The author has lucidly explained the various provisions relating to appointment of directors, their tenure, duties and responsibilities. The author has also explained in simple language about the procedure of conducting and convening board meetings. </div>
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On the share capital of the company, the author explains the different types of share capital, i.e. authorised share capital, issued share capital, subscribed share capital, paid-up share capital etc., along with different types of shares i.e. equity shares, preference shares, equity shares with differential voting rights, etc. With an objective of having a basic understanding of raising of finance by companies, the author has explained the different ways of raising it, i.e. Rights Issue, Private Placement, Preferential Issue, ESOPs. In a different chapter, the author has explained the various provisions relating to acceptance of loans and deposits by a company. The author has pointed out important aspects from the perspective of compliance under the Companies Act, 2013 and the Rules made thereunder. In a separate Chapter, the author has discussed some important aspects about the appointment of Statutory Auditor and Company Secretary and their role in functioning of company.</div>
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Running a business comes with its own challenges. Sometimes when things do not work out, necessary steps shall be taken for closure of company. In this part of the book, the author has adequately covered the provisions relating to winding-up of company, dormant companies, striking off of companies, liquidation of company. </div>
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For the convenience of the readers, the author has presented the special provisions applicable to private companies, list of Registrar of Companies along with their updated addresses, list of applicable e-Forms, etc. in tabular format. This part of the book will be helpful for corporate law professionals from the perspective of routine compliance and audit.</div>
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The Author has also covered another important topic – Limited Liability Partnership. In this topic, the author has explained the process of incorporation, points to be considered in the LLP agreement, working and operations of LLP, roles and responsibilities of the partners and designated partners of the LLP. From the perspective of restructuring, the author has also covered important topics relating to conversion of company into LLP, conversion of partnership firm into LLP, closure of LLP, etc. This topic will help the readers in comparing the advantages and disadvantages of incorporating a company vis-à-vis LLP.</div>
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The book will be quite helpful for businessmen, entrepreneurs, non-commerce students, corporate law professionals and non-corporate law professionals for understanding the basic provisions of the companies and LLP. The book will be good addition to the Marathi curriculum and libraries of school/college/university. The book is presented in a very lucid and comprehensible manner to provide the readers an insight of the Companies Act as applicable to small private companies and LLP Act.</div>
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<i>The book can be purchased from:</i></div>
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Vyapari Mitra</div>
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Parshuram Kuti 106/9, Erandwana, </div>
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Near Old Shamrao Kalmadi High School,</div>
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Pune – 411004, Maharashtra, IN.</div>
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+91 94218 80290</div>
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https://www.vyaparimitra.com/ </div>
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sampadak@vyaparimitra.com </div>
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<span style="text-align: center;"><i>Book review prepared by Gaurav Pingle, Company Secretary, Pune.</i></span></div>
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Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-80893060471257231432018-09-03T01:02:00.000-07:002018-09-03T01:02:26.396-07:00Whether examination for aspiring Independent Directors serves any logical purpose?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Times, Times New Roman, serif;"><i style="mso-bidi-font-style: normal;"><span style="line-height: 115%;">Background</span></i><span style="line-height: 115%;">:
Government plans to have examinations for individuals who want to become
independent directors (‘IDs’) as part of bolstering the corporate governance
framework, according to Union Minister P P Chaudhary. While there are stringent
provisions under the Companies Act, 2013 to ensure good governance standards,
the roles of IDs has come under the scanner in certain instances of corporate
misdoings. Also, at a time when the Government is making efforts to make its
role minimal in the affairs of corporates, the role of IDs is more vital. Asserting
that the Government is committed to improve the fabric of corporate governance
in the country, Chaudhary said strengthening the role of IDs in the affairs of
companies is one of the steps in that direction. “The requirement with respect
to IDs to have minimum reasonable qualifications and a certification course/
exam are also being considered,” Chaudhary told in an interview. <i style="mso-bidi-font-style: normal;">[Key excerpts from <a href="https://economictimes.indiatimes.com/news/economy/policy/government-plans-exam-for-individuals-looking-to-become-independent-directors/articleshow/65642719.cms">ET
News story</a>]</i>.<o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="mso-bidi-font-style: normal;"><span style="line-height: 115%;">Provisions under Companies Act, 2013 & SEBI Listing
Regulations:</span></i><span style="line-height: 115%;"> Presently, there is no
provision in the Companies Act and SEBI Listing Regulations of an examination for
individuals who want to become independent directors. <o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="mso-bidi-font-style: normal;"><span style="line-height: 115%;">Databank of independent directors</span></i><span style="line-height: 115%;">: Section 150 of the Companies Act relates to ‘Manner
of selection of IDs and maintenance of databank of IDs’ [effective from April
1, 2014 but not practically implemented]. Pursuant to the provisions, ID may be
selected from a data bank containing names, addresses and qualifications of
persons who are eligible and willing to act as IDs, maintained by any body,
institute or association, as may be notified by the Central Government, having
expertise in creation and maintenance of such data bank and put on their
website for the use by the company making the appointment of such directors.
The responsibility of exercising due diligence before selecting a person from
the data bank referred to above, as an ID shall lie with the company making
such appointment.<o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="mso-bidi-font-style: normal;"><span style="line-height: 115%;">Recommendation of the Kotak Committee on Corporate
Governance:</span></i><span style="line-height: 115%;"> The Kotak Committee
noted that the Companies Act provides general clauses pertaining to training,
induction, etc. of directors and SEBI Listing Regulations requires
familiarization of IDs relating to certain specified matters. However, specific
provisions on induction training and periodicity of continuous updation are
lacking. Based on this background, Kotak Committee recommended: (i) A formal
induction should be mandatory for every new ID appointed to the board; and (ii)
Formal training, whether external/internal, especially with respect to
governance aspects, should be required for every ID once every 5 years, the
onus of which shall be on the director. However, such recommendation was not
accepted by the SEBI.<o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="mso-bidi-font-style: normal;"><span style="line-height: 115%;">Moot question is whether examination for aspiring
Independent Directors serves any logical purpose?</span></i><span style="line-height: 115%;"> Considering the examination for aspiring
Independent Directors, in my view, the entire thrust is on ‘examination’ and
not ‘training’. The outcome of this would be ‘well-qualified IDs’ but not ‘well-trained
IDs’ or ‘capable IDs’. The examination would be in MCQ format covering general
syllabus relating to law, finance, accounts and management (<i style="mso-bidi-font-style: normal;">just guessing, based on on-going trend</i>).
However, in practice, an ID has to confront the challenges w.r.t. disclosures,
compliances, fiduciary duties, approval process w.r.t related party transactions,
appointment of auditors, approval of financial statements, etc.</span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><span style="line-height: 115%;">Considering the
dynamic changes in law (Companies Act, Securities Law, IBC, Foreign Exchange
Laws, GST, etc.) one-time examination would not serve the real purpose in the long
run. The IDs need ‘training’ and not ‘examinations’. The trainings should be
from the perspective of the industry specific laws, company’s practice, company’s
implementation process, regulatory updates, recent case laws (India and
abroad), global practices, peer-practices etc. All these practical and relevant
aspects will not be part of the examination which is proposed by the
Government.</span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><span style="line-height: 115%;">The Government, in my view, shall re-consider this proposal. The
Kotak Committee on Corporate Governance has made some important and relevant
recommendations which should be considered by SEBI and MCA.</span></span></div>
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Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-12775726915333906342018-08-12T13:27:00.002-07:002018-08-13T10:54:19.736-07:00Whether Related Party Transactions really need a relook?<div dir="ltr" style="text-align: left;" trbidi="on">
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<i style="font-family: "times new roman", serif;">By Gaurav Pingle, Company Secretary, Pune</i></div>
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<span style="font-family: "times new roman" , serif;"><i>(E-mail id: <a href="mailto:gp@csgauravpingle.com">gp@csgauravpingle.com</a>)</i></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Background</span></i><i style="mso-bidi-font-style: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">:</span></i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">
Recently, an article was published in Economic Times on the topic of Related
Party Transactions (titled, </span><a href="https://economictimes.indiatimes.com/markets/stocks/news/related-party-deals-in-companies-act-need-a-relook/articleshow/65289517.cms"><i style="mso-bidi-font-style: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Related Party deals in Companies
Act need a relook</span></i></a><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">). The article was in relation to
the Annual General Meeting of Tata Sponge Iron Limited wherein the company had
proposed 3 resolutions relating to related party transactions for shareholders
approval. The company faced defeat on all the 3 resolutions. Out of the 45.5%
non-promoter shareholders, only 12.43% participated in the voting; of which
66.76% opposed the resolution. The company faced defeat on all 3 resolutions
for approval of RPTs with just 3.77% of the total shareholders opposing it. It
can be said that the shareholders holding 3.77% virtually bulldozed the wishes
of 96.23%.<o:p></o:p></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Provisions under Companies Act, 2013 & SEBI Listing
Regulations:</span></i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;"> Under the extant provisions of the Companies
Act, 2013, a related party is prohibited from voting on the resolution as a
shareholder where the related party is party to the contract. Whereas, under
SEBI Listing Regulations all the related parties are prohibited from voting,
irrespective whether the shareholder is a related party or not. <o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Presently,
under the Companies Act, 2013 (section 184), every director of a company who is
in any way, whether directly or indirectly, concerned or interested in a
contract or arrangement or proposed contract or arrangement entered into or to
be entered into shall disclose the nature of his concern or interest at the
meeting of the Board in which the contract or arrangement is discussed. Such
director shall not participate in the meeting of the board of directors.<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Under
the Companies Act, 2013 (section 184), where any director who is not so
concerned or interested at the time of entering into such contract or
arrangement, he shall, if he becomes concerned or interested after the contract
or arrangement is entered into, disclose his concern or interest forthwith when
he becomes concerned or interested or at the first meeting of the Board held
after he becomes so concerned or interested.<o:p></o:p></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Analysis:</span></i><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;"> After
notification of the Companies Act, 2013 and introduction of the SEBI Listing
Regulations, related party transactions have been at the center stage of
corporate governance arena. The crux of the entire issue is – Whether
prohibition on voting by related parties is constitutionally valid? In my view,
such prohibition amounts to depriving a person of his right to vote and it is a
well settled principle of the company law that depriving a voting right is
depriving the property, since vote is property. The shareholders vote is a
right of property, and prima facie may be exercised by a shareholder as he
thinks fit in his own interest. A member can exercise this right even in a
manner adverse to what others may think the interest of the company, provided
his vote is bona fide and contrary to public policy. It is settled in company
law that right to vote attached to a share is property. </span><span style="font-family: "times new roman", serif; font-size: 12pt;">In
my view, neither Companies Act, 2013 nor SEBI Listing Regulations shall take away
such right of a shareholder (whether as a promoter or non-promoter, whether
related party or not).</span><br />
<span style="font-family: "times new roman", serif; font-size: 12pt;"><br /></span>
<span style="font-family: "times new roman", serif; font-size: 12pt;">I am of the opinion that the Companies Act, 2013 and
SEBI Listing Regulations shall enhance the disclosure requirements for such
related party transactions. Such disclosures can be part of Explanatory Statement
to the Notice of the general meeting. The law may also direct the companies to
give a public notice / advertisement of such related party transactions. The
law may also direct the board of directors to provide a declaration that such
related party transaction is in the interest of the company with requisite
reasoning. The declaration may also contain a provision that all the necessary
disclosures by the directors have been made to the shareholders. In my view, not
all RPTs are against the interest of the company. Some RPTs may be a requirement of the company to focus on its
core business activity. Better disclosures and transparency by the board of
directors will also eliminate the possibility (which is now a reality as well!)
of majority shareholders being at the mercy of minority shareholders.</span></div>
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<br /></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">In
my book on Related Party Transactions, in one of the Chapters, I have compared
the RPTs provisions under the Companies Act, 2013 and SEBI’s Listing
Regulations. There are 26 comparative points on the provisions relating to
RPTs. The other RPT provisions includes scope of related party, type of specified
transaction, ‘pricing parameter’, reference of ‘ordinary course of its business’,
Audit Committee’s approval, recommendation to the board of directors where RPT
is not approved by Audit Committee, ratification of RPTs by Audit Committee,
material RPTs, trigger point for shareholders’ approval, provisions relating to
royalty payment, annual disclosures, etc. The regulators shall harmonize the
said provisions which will ultimately address the real issues in RPTs.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Book
on RPTs can be purchased from: </span><a href="https://www.flipkart.com/decoding-related-party-transactions/p/itmf79r5nemwhq2n?pid=9789351396239&lid=LSTBOK9789351396239W8SUIX&marketplace=FLIPKART&srno=s_1_2&otracker=search&fm=SEARCH&iid=0e71fb92-1ffe-4164-90e8-43444bde6e38.9789351396239.SEARCH&ppt=Home"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Flipkart</span></a><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">
& </span><a href="https://www.amazon.in/Decoding-Related-Transactions-Gaurav-Pingle/dp/9351396231/ref=sr_1_2?ie=UTF8&qid=1533060709&sr=8-2&keywords=related+party+transaction"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">Amazon</span></a><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt;">
.<o:p></o:p></span></div>
</div>
Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com1tag:blogger.com,1999:blog-4122062719274234638.post-86330675344744500562018-08-09T13:32:00.001-07:002018-08-10T01:29:50.950-07:00Milkha Singh, The Race of My Life<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><b>Milkha Singh</b>, popularly known the Flying Sikh, is an
inspirational story of India’s most iconic male athlete. <i style="mso-bidi-font-style: normal;">Bhaag Milkha Bhaag</i> is a biographical film that depicted his early
life and career. The book ‘The Race of My Life’ is an autobiography of the
Flying Sikh. I feel that the book is more inspirational than the movie. This
write-up / blog is a review of the book ‘The Race of My Life’. It captures the
real life of Milkha Singh, his challenging experiences and inspiring moments.
Wherever necessary I have given the excerpts of his life-time experience, which
no one can explain better than him. It is a 150 page book divided into 20 Chapters.
He has explained the pre-independence era, partition time which had a very
significant impact in his life, his life before and his life after army, his
experiences as an athlete and most importantly his PASSION for running! The
book is beyond a ‘self-help book’. It is a must read for any person who wants
to achieve any goal in life. The book will definitely establish self-belief in
a person.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">The Foreword for the book is written by Shri Rakeysh
Omprakash Mehra (Director, <i style="mso-bidi-font-style: normal;">Bhaag Milkha
Bhaag</i>) and Introduction to the book is written by Milkha Singh’s son –
Jeev.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">In the half-page Prologue, Milkha Singh stated that “<i style="mso-bidi-font-style: normal;">When I reflect upon my life I clear see how
my passion for running has dominated my life. The images that flash through my
mind are those of me running … running …. Running…<o:p></o:p></i></span></div>
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Sprinting
from one shady patch to another to escape the blistering heat of the sun on my
journey to school,<o:p></o:p></span></i></div>
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</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Feeling the
massacre on that fearsome night when most of my family was slaughtered<o:p></o:p></span></i></div>
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</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Racing
trains for fun,<o:p></o:p></span></i></div>
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</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Outrunning
the police when I was caught stealing in Shahdara,<o:p></o:p></span></i></div>
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</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Leaving
everyone behind in my first race as an army jawan so that I could get an extra
glass ofmilk,<o:p></o:p></span></i></div>
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</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Surging
past my competitors in Tokyo when I was declared Asia’s Best Athlete,<o:p></o:p></span></i></div>
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</span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Running in
Pakistan and being held as ‘The Flying Sikh’,<o:p></o:p></span></i></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Each of
these moments brings back bittersweet memories as they represent the different
stages of my life, a life that has been kept afloat by my intense determination
to triumph in my chosen vocation.”<o:p></o:p></span></i></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">The Prologue really moved me and made me more serious
about reading the book at one go. </span><span style="font-family: Wingdings; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-char-type: symbol; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-symbol-font-family: Wingdings;"><span style="mso-char-type: symbol; mso-symbol-font-family: Wingdings;">J</span></span><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"> <i style="mso-bidi-font-style: normal;"><o:p></o:p></i></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: blue;">Faith on his
Coach<o:p></o:p></span></span></b></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: blue;">(Morale
boosting attitude and clever strategies that Dr. Howard gave me, equipped me
with the confidence that I badly needed)</span><o:p></o:p></span></i></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">In almost all chapters on his running, Milkha Singh
has touched upon the contribution of his coaches in his career. He has
explained the way his coaches mentally prepared him for every match. The American
Coach, Dr Howard had accompanied the Indian Team<a href="file:///F:/Compilation%20-%20ICSI%20Magazines%20%5bRelated%20to%20Corp.%20Laws%5d/Blog/the%20race%20of%20my%20life.docx#_ftn1" name="_ftnref1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 11.0pt; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">[1]</span></span><!--[endif]--></span></span></a>. About
Dr. Howard, Milkha Singh has stated that “<i style="mso-bidi-font-style: normal;">He
was an outstanding trainer, who was very well acquainted with international
training patterns and techniques. He was also very astute and could easily
judge the strengths and weaknesses of the other athletes. For an entire day he
mentored me, giving me pointers on what to expect. More than anything he was
trying rid me of my inferiority complex and instill self belief. I had
convinced myself that there was no way that I could be among the six finalists,
let alone win a gold medal. What chance did I have against superbly fit
professionals Malcolm Spence from South Africa, George Kerr from Jamaica, Keven
Gosper from Australia, Terry Tobacco from Canada and John Salisbury from
England.<o:p></o:p></i></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">However,
because of Dr. Howard’s motivation and advice, I won heat after heat and
effortlessly reached the finals. The night before the race, Dr. Howard
reiterated the tips he had drilled into me. He revealed that Spence had more
stamina than speed, and that I should stick to me own style of running the 400 mts.
race, i.e. to start in top gear. He emphasized that I must not start slowly,
that I must maintain my speed for first 300 meters, and then give it my all in
the last 100 mts. He said that if I ran first 300 mts. at full speed, Spence
would do the same, although that was not his running strategy.<o:p></o:p></span></i></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">The morale
boosting attitude and clever strategies Howard gave me, equipped me with the
confidence that I badly needed. I started believing that I could be the best.
Another constant motivation was a burning desire to do well for the country – I
was well aware that my good performance would lead to the glory of India.”</span></i><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></div>
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<br /></div>
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<span style="color: blue;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Life-time
title ‘The Flying Sikh’</span></b><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: blue;">(Athlete
running before you is Milkha Singh. He does not run, he flies! His victory will
be recorded in Pakistan’s history)</span><o:p></o:p></span></i></div>
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<br /></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Soon after the National Games at New Delhi, India
received an invitation from Pakistan Government for the Indo-Pak Sports Meet.
About this visit, Milkha Singh stated that “<i style="mso-bidi-font-style: normal;">What
an ironic twist of fate. I was returning to the land where I was born, where I
had lost my home and most of my family in the inhuman savagery that followed
Partition</i>”. Milkha Singh didn’t want to go, but Pandit Nehru intervened,
saying that this visit was for the honour of country and that Milkha Singh was
going there as an ambassador of India.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Just before the race at Pakistan, Milkha Singh has
described the entire event, as “<i style="mso-bidi-font-style: normal;">There was
pin drop silence as we stood at the starting line waiting for the race to
begin. The silence was oppressive. The starter, dressed in white shirt and
trousers, a red overall, white peaked cap and black shoes, stood on a table
behind us. He shouted, ‘On you marks’, fired the gun and the race begun. The
audience suddenly awoke and began to chant: ‘Pakistan Zindabad: Abdul Khaliq
Zindabad.’ Khaliq was ahead of me but I caught up before we had completed the
first 100 mts. We were shoulder to shoulder then surprisingly, Khaliq seems to
slacken and I surged ahead as if on wings. I finished the 200 mts. about 10
yards ahead of Khaliq, clocking 20.7 seconds that equaled the world record. My
coach, Ranbir Singh, the manager and all my team members leapt to their feet in
jubilation. I was embraced, thumped on the back and then lifted on to their
shoulder as they expressed their happiness both vocally and physically …. After
the race, I ran a victory lap of the stadium, while loud speakers announced:
‘The athlete running before you is Milkha Singh. He does not run, he flies! His
victory will be recorded in Pakistan’s history and we confer the title of
‘Flying Sikh’ on him’. It was General Ayub Khan who coined the titled ‘Flying
Sikh’, when he had congratulated me, saying ‘Tum daude nahi, Udhey ho’ – You do
not run, but fly! As I passed in front of the woman section the ladies lifted
their burqas from their faces so that they could have a closer look at me – an
incident that was widely reported in the Pakistani press. And so, with this
victory I became the Flying Sikh. A title that soon became synonymous with my
name all over the word.</i>”<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="color: blue;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Once an Athlete,
Always an Athlete:</span></b><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: blue;">(Coach has
the power and influence to build a sportsperson’s stamina, prowess and
self-confidence)</span></span></i><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">In this Chapter, Milkha Singh has touched upon the
sports industry and selection criteria at a national and international level.
He has raised and addressed few critical issues in the selection process. He
has mentioned about the international level of coaching, sports infrastructure
and scientific training methods. He has given a reference of the productivity
of National Institute of Sports. Importantly, he has discussed about the
accountability in sports industry. This Chapter will be very relevant and
interesting for the coaches, sports management students and sportsman.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Milkha Singh has stated that “<i style="mso-bidi-font-style: normal;">How very different this systematic approach is from the lackadaisical
manner in which we try to develop our sports people. Selection in India are
adhoc, often dictated by political diktats, or through personal contacts and
connections. What India needs today is a firm goal to aspire towards, and what
could be more prestigious than aiming for an Olympic gold? Success in the
Olympic should be our ambition but to achieve that end, we international level
coaching, and for that, I would strongly recommend emulating the Chinese, right
from creating a world class sports<span style="mso-spacerun: yes;">
</span>infrastructure to spotting and grooming kids with talent. We need to
overhaul our selection process and training methodology and chose on the most
talented young boys and girls who show promise and have the potential to produce
results. Give them professional guidance, give scientific training methods,
discipline them if their standards fall, and above all, inspire and motivate
them. What needs to be instill in them right from beginning is: toil hard to
increase efficiency, stamina and strength, be resolute in thought, word and
deed, and most important of all take pride in your performance.<o:p></o:p></i></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">But no
sportsman can achieve results without an equally dedicated and committed coach.
Thousands of coaches graduate from the National Institute of Sports (NIS) every
year, but what has been their contribution to the development of our sports
people? Unlike China, they are not held accountable if their trainees do not
produce the expected results. The sad truth is that no can question them, neither
the government who employs them nor the association who sponsor them, not even
their students whose careers depends upon them. As a result, they have grown
complacent in their jobs</span></i><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">.”<i style="mso-bidi-font-style: normal;"><o:p></o:p></i></span></div>
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<br /></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">He has compared the present sports industry scenario
and coaches with his own time. He has once again appreciated the contribution
of his coaches from his journey from <i style="mso-bidi-font-style: normal;">Milkha
Singh</i> to <i style="mso-bidi-font-style: normal;">Flying Sikh</i>. In the
book, he has stated that “<i style="mso-bidi-font-style: normal;">The lethargy or
apathetic coach can only impede the growth and progress of an athlete. If there
were no Gurudev Singh, Ranbir Singh or Doctor Howart when I first started
running, would I have ever achieved the success I did? No. And I will reiterate
what I have always said that it is only the coach who has the power and
influence to build a sportsperson’s stamina, prowess and self-confidence</i>.”<o:p></o:p></span></div>
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<br /></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: blue;">The
politics of sports<o:p></o:p></span></span></b></div>
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<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: blue;">(No other
sport gets the kind of exaggerated coverage that the cricket does)</span><o:p></o:p></span></i></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">In this Chapter, Milkha Singh has candidly discussed
about the reasons why sports standards are declining in last few decades. He has
very rightly criticized cricket. In this Chapter, he has mentioned that in
India, if a sportsperson (other than cricketer) wins or breaks a record then
the attention will focus on them only for a short while. He has stated that
Media can change this scenario and encourage other sports in every possible
way.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Milkha Singh stated that “<i style="mso-bidi-font-style: normal;">Another reason why sports standards are declining is that over the last
few decades, cricket has over shadowed every other sport in India. Open any
newspaper, put on the television, and what first grabs the persons attention
are the screaming headlines and images of star cricketers in action. No other
sport gets the kind of exaggerated coverage that the cricket does. Besides,
there is a constant cycle of cricket – test matches, one dayers, IPL and what
not – taking place throughout the year, so many events that there seems to be
very little respite between one match and the next. Compelling images,
swashbuckling exploits, glamorous lifestyles, and most important, the money are
the lures that attract young children towards the game.<o:p></o:p></i></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<i style="mso-bidi-font-style: normal;"><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Just a
handful youngsters are interested in any other sports. Even if a sportsperson
wins or breaks a record in any other game, be it athletics¸ hockey, boxing,
wrestling, shooting, tennis or badminton, attention will focus on them only for
a short while. For example, our medalist at the 2012 London Olympics, including
Saina Nehwal, Sushil Kumar, M.C. Mary Kom, were greatly feted for their success
when they returned. But then the attention was back to cricket once again. I
think the media should help encourage other sports in every possible way.”</span></i><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">As mentioned earlier, this book is a must read. The
book will surely instill self belief. </span><span style="font-family: Wingdings; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-char-type: symbol; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-symbol-font-family: Wingdings;"><span style="mso-char-type: symbol; mso-symbol-font-family: Wingdings;">J</span></span><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></div>
<div style="mso-element: footnote-list;">
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<div id="ftn1" style="mso-element: footnote;">
<div class="MsoFootnoteText" style="text-align: justify; text-justify: inter-ideograph;">
<a href="file:///F:/Compilation%20-%20ICSI%20Magazines%20%5bRelated%20to%20Corp.%20Laws%5d/Blog/the%20race%20of%20my%20life.docx#_ftnref1" name="_ftn1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">[1]</span></span><!--[endif]--></span></span></a>
Reference: British Empire and Commonwealth Games, 1954. Chapter 10 – ‘Come on
Singh’, Page 70</div>
</div>
</div>
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</div>
</div>
</div>
Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-58994582742214573002017-10-09T05:47:00.002-07:002017-10-09T06:01:51.545-07:00Book Review – 5th Edition of the book “Transfer and Transmission of Shares”<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgra-lo05n1bYF9bU9m7GXIDt7K31UnClbmxtLpfxDY3DWibnVGcrTnDTUoN378AhsJ2arG9VtX_5N3_N5495NjoyKI0vcrvo4El40ciUGIhz6rJAP-ounIVxKUioYOzUIkSqwU7xPjhLgj/s1600/Transfer+%2526+Transmission+Book.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="684" data-original-width="451" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgra-lo05n1bYF9bU9m7GXIDt7K31UnClbmxtLpfxDY3DWibnVGcrTnDTUoN378AhsJ2arG9VtX_5N3_N5495NjoyKI0vcrvo4El40ciUGIhz6rJAP-ounIVxKUioYOzUIkSqwU7xPjhLgj/s320/Transfer+%2526+Transmission+Book.jpg" width="209" /></a></div>
<br />
<br />
Recently, Bharat Law House published the 5th Edition of the Book “Transfer and Transmission of Shares”. The book is authored by Dr. KR Chandratre, Practising Company Secretary and Past President of the Institute of Company Secretaries of India. It covers a special chapter on Depository System.<br />
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In the Preface to the 5<sup>th</sup> Edition, the
author states:</div>
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<blockquote class="tr_bq">
<blockquote class="tr_bq">
<i>The book has always been acclaimed and
received well by the companies and professionals as an authoritative commentary
and practical handbook on the subject. It had once received appraise from one
of the Chairman of the Company Law Board during nineties</i>.”</blockquote>
</blockquote>
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The first Edition of the book was written by Dr. KR
Chandratre in 1990. On October 5, 2017, I received following message from the
author:</div>
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<blockquote class="tr_bq">
<blockquote class="tr_bq">
<i><span style="line-height: 115%;">I’m happy to inform you about the release of the 5th
edition of one of my books. The first edition of this book, released in 1990,
was the first book I wrote in my life and I had written the entire manuscript
of the book by hand and someone had typed it for me on manual typewriter.”</span></i></blockquote>
</blockquote>
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5<sup>th</sup> Edition of the book is based on the
provisions of Companies Act, 2013 and the Rules made there under. It also
covers relevant cases decided by Courts, CLB, NCLT/NCLAT reported after the
release of 4<sup>th</sup> Edition until August 2017. The changes proposed by
the Companies (Amendment) Bill, 2017, as passed by the Lok Sabha, are also
incorporated at appropriate places. The book has a separate chapter on “Section
236 of Companies Act, 2013 – as proposed to be amended by the Companies
(Amendment) Bill, 2017: Whether it mandates forced buyout of minority
shareholders”.</div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="line-height: 115%;">The book covers commentary and case laws on shares,
types of shares, forfeiture of shares, lien on shares, debentures, member,
eligibility criteria to be a member of company, joint shareholders, share transmission
and nomination, holding of shares in a wholly owned subsidiary company, share
certificate. There is an exhaustive chapter on “Transferability of shares:
Basic Principles” and “Transfer of shares: Law & Procedure”. Stamp duty is
always an important and critical aspect for any instrument and there is a
separate chapter on this topic. Declaration of beneficial interest in shares is
an important issue where shares of the company are held by nominee and trust
and there is a separate topic on the same covering commentary and case laws.<o:p></o:p></span></div>
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<br /></div>
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<span style="line-height: 115%;">The Chapter on “Depository System – Law and Mechanism”
covers exhaustive commentary on the Depositories Act, 1996 and SEBI (Depository
Participants) Regulations, 1996 with necessary references to Banker’s Books
Evidence Act, 1891. This part of the book, along with other Chapters, will be a
great value addition for professionals working in listed companies and
Regulators like SEBI and Stock Exchanges. </span><span style="line-height: 115%;">In the book, there is an exclusive section on the gist of cases on Refusal to Register Transfer and Transmission of shares and the Remedies and Rectification of Register of Members. The section covers gist and analysis cases decided by CLB, NCLT/NCLAT, High Court and Supreme Court. It covers gist of cases on 417 issues, like nature and scope of jurisdiction of tribunals and Civil Court, power to grant injunction, ‘sufficient cause’, ‘unnecessary delay’, refund of consideration when transfer of refused, fraud or misrepresentation, forfeiture of shares, rectification when company goes in winding-up, arbitration, cancellation of stamps, refusal in respect of pledged shares, transferee member of rival group, transfer of shares of a sick company, etc. This part of the book, along with other chapters, will be a great value addition for professionals having litigation practice. For professionals working in the corporate secretarial department of companies, this section of the book will help you to understanding the judicial aspect of the transfer / transmission related provisions.</span><br />
<br />
The book will be useful to corporate executives,
professionals and also to law enforcing agencies such as MCA, SEBI, Stock
Exchanges and the judiciary – NCLT and NCLAT.</div>
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<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="line-height: 115%;">For me, it is always an honor and privilege to contribute in updating the chapters of the book.<o:p></o:p></span></div>
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<i><span style="line-height: 115%;">The book can
be purchased <b><a href="http://www.bharatlaws.com/book_detail.php?book_id=402&product_name=TRANSFER-">here</a></b>.</span></i></div>
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<i><span style="line-height: 115%;"><br /></span></i>
<br />
<div style="text-align: center;">
<span style="line-height: 115%;"><b><u>Preface to the Fifth Edition</u></b></span></div>
<div style="text-align: center;">
<span style="line-height: 115%;"><b><u><br /></u></b></span></div>
</div>
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<i><span style="line-height: 115%;"></span></i><br />
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Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-14510046009591950622017-10-01T13:31:00.002-07:002017-10-02T02:08:37.543-07:00RBI’s James Bond on Demonetization, Bankruptcy Code & more…<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-size: xx-small;"><span style="font-family: "times" , "times new roman" , serif;">(Image Source: <a href="http://www.livemint.com/Politics/ZLQG6XApzRi6dCzK6Y0McP/Raghuram-Rajan-says-things-will-only-get-better.html">Livemint</a> )</span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b>RBI’s James Bond on Demonetization, Bankruptcy Code & more…</b></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><br /></span></div>
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<span style="font-size: 12pt;"><span style="font-family: "times" , "times new roman" , serif;">The book “<b>I do What I do</b>”
has been one of the most awaited books (for me, at least) for 2017. The book is
not just a compilation of the prominent speeches and research papers of Dr.
Raghuram G Rajan but it gives adequate background of the same. In the
commentary part of the book (i.e. background), Dr. Rajan explains the economic
scenario, challenges faced by the Govt. / RBI at that point of time. For some
of the speeches, he has given a reference to the media / social media hype that
was created. Inspite of the fact that the book is a compilation of Dr. Rajan’s
speeches, I feel that this book is a must read for all law, commerce and
finance students and professionals. He gives a rationale of the decisions taken
by RBI w.r.t. Foreign Exchange inflows and outflows, fight against inflation, economic
growth, currency risks, Non Performing Assets, Monetary Policies, Jan
DhanYogana, competition in Banking sector, debt markets, resolving stress in
the banking system, independence of Central Bank, Financial Sector Legislative
Reforms Committee Report (FSLRC) & many more..</span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">Primarily, the book is
divided into 3 parts viz. (i) RBI days, (ii) Global Financial Crises, (iii) Occasional
Pieces. The first part, i.e. the RBI Days,covers almost 2/3<sup>rd</sup> of the
book. It covers the first speech of Dr. Rajan as the RBI Governor and ends with
his last official e-mail addressed to the RBI staff. For law and commerce
students and professionals, this part of the book will be very interesting and
relevant. The other parts of the book (‘Global Financial Crises’ and
‘Occasional Pieces’) will be relevant (and interesting) for finance students
and professionals, as the information is quite ‘technical’.<o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">Being a corporate law consultant,
author and trainer, I have ensured the write-up focuses on Dr. Rajan’s view
point on Insolvency and Bankruptcy Code (‘IBC’), large loan defaulters and demonetization.
In fact, the purpose of purchasing the book was to understand the rationale of
Dr. Rajan on the same.<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Why the title
“I do What I do”:</u> </span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;">The title of the book is quite attractive. Like other people, I was
also very curious to know the purpose of having such title. Dr. Rajan explains
the reason in the “Introduction” of the Book.In one of the press conference,
Dr. Rajan was asked whether he was dovish like Yellen or hawkish like Volcker. He
replied as “<i>I understood what the
reporter was asking, but I wanted to push back on the attempt to pigeonhole me
into existing stereotypes. Somewhat jokingly, I started in a James Bond-ish
vein, ‘My name is Raghuram Rajan…’ To my horror, mid-sentence I realized I did
not know how to end in a way that did not reveal more on monetary policy than I
intended. So with TV cameras trained on me, I ended lamely ‘…and I do what I
do’</i>”. <o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">The sentence became the
financial press headline the next day, with the details of monetary
policyrelegated to the inside columns. On his daughter’s comments on the
statement, he said “<i>The commentary on
social media even reached my usually supportive daughter, who emphasized her
negative reaction to my unwitting sentence with repeated thumbs-down emojis!</i>”<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Dosanomics:</u></span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"> In late 2015 and early
2016, the inflation rate had come down and the banks had lowered deposit rates.
However, few savers were unhappy, inspite of the fact that inflation had fallen
much more than the rates on deposits. Earlier, the savers argued that they got
paid 10% on their fixed deposits at banks, now they get 8%. Was that fair? Dr.
Rajan explained that it was indeed fair, as the inflation had come down faster,
so the real returns (in terms of goods and services they could purchase) on
their savings were now higher. In his lecture at NCAER in Jan. 2016, Dr. Rajan gave
an example of Dosa in relation to inflation. The media termed it as Dr. Rajan’s
‘Dosanomics’.<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Job of the
Governor:</u> </span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;">Dr.
Rajan was the 23<sup>rd</sup> Governor of the Central Bank of India. His term
was from Sep. 4, 2013 to Sep. 4, 2016. During his tenure as RBI Governor, he
had regular meetings with Prime Minister Dr. Manmohan Singh and Finance Minister
Chidambaram, and then when the Govt. changed, with Prime Minister Narendra Modi
and Finance Minister Jaitley. On the least pleasant aspect of his job as RBI
Governor, he stated that it was dealing with bureaucrats who were trying to
undercut the RBI so as to expand their turf. In his last speech as the RBI
Governor, he offered suggestions to the Govt. on how to reduce these
unproductive frictions.<o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">On RBI Governor’s work
profile in relation to other public administration job, he states that “<i>The job of Governor is probably the most
fulfilling job any Indian economist could aspire for. There were many days when
I went home tired but happy that we had really made a difference. There are
very few jobs in public administration where one can say this because one is
always hemmed in by the need to get the concurrence of other organizations, and
turf battles make it hard to move forward. At the RBI, on many issues the
decision was ours, and ours alone, so progress was feasible and continuous.
This also meant that the job weighed constantly on my mind, for I had to keep
asking what more we could do, given the possibilities were endless. Putting a
policy economist in the Governor’s job is like letting a kid loose in a candy
shop!</i>”<b><o:p></o:p></b></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Demonetization:</u>
</span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;">Dr. Rajan
was asked many questions by Reporters on Modi Govt.’s bold move of demonetization,
but he refused toanswer for sometime. In the book, Dr. Rajan has given a
summarized opinion and background to such ‘bold’ move. He has stated that:<o:p></o:p></span></span></div>
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<i><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">“I was asked
by the government in February 2016 for my views on demonetization, which I gave
orally. Although there might be long-term benefits, I felt the likely short
term economic costs would outweigh them, and felt there were potentially better
alternatives to achieve the main goals. I made these views known in no
uncertain terms. I was then asked to prepare a note, which the RBI put together
and handed to the government. It outlined the potential costs and benefits of
demonetization, as well as alternatives that could achieve similar aims. If the
government, on weighing the pros and cons, still decided to go ahead with
demonetization, the note outlined the preparation that would be needed, and the
time that preparation would take. The RBI flagged what would happen if
preparation was inadequate.<o:p></o:p></span></span></i></div>
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<i style="font-family: times, "times new roman", serif;"><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;">The government
then set up a committee to consider the issues. The deputy governor in charge
of currency attended these meetings. At no point during my term was the RBI
asked to make a decision on demonetization.”</span></i></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">Incidentally, such a
revelation comes at a time when the RBI report’s claim that 99% of the
demonetized notes were returned to the banks. This may have an impact on the NDA
Govt.’s performance in the upcoming general elections.<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Resolving
Stress in Banking System:</u> </span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;">The Insolvency and Bankruptcy Code, 2016 was not effective during Dr.
Rajan’s tenure as RBI Governor. Therefore, with an objective to resolve the
stress in banking system, RBI had introduced number of Schemes for facilitating
bank resolution of distress. The Schemes were repeatedly re-examined to see how
they could be tweaked to facilitate resolution. Dr. Rajan, in his commentary,
said that “<i>Unfortunately, with the
exception of a few hard-charging and conscientious bankers, the general mood
among the bankers was to continue to extend and pretend. They feared they would
be held accountable for any concession they made, and constantly (and perhaps
understandably) avoided taking decisions</i>” <o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">In the postscript to one of
his speech, Dr. Rajan has appreciated the efforts taken by the NDA Govt. in
enacting Bankruptcy Code and amending various acts governing debt recovery by
making them less easy to game. He concludes by stating that “<i>These are important steps forward in
rectifying the balance between borrower and lender in India. However, the
operational effectiveness of these changes needs to be tracked, and further
amendments enacted if necessary, until we have a resolution system that works
in a rapid, fair and transparent way.</i>”<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Large Promoter
Defaults:</u></span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"> In
one of his lectures, Dr. Rajan deliberated on the large borrowers, their
defaults, role played by the public sectors banks and taxpayer’s money. He said
that the reason we are willing to protect the borrower against the creditor is
that the hated moneylender looms large in our collective psyche. He stated that
the large borrower today is not a helpless illiterate peasant and the lender
today is typically not the “sahukar” but a Public Sector Bank. He opined that “<i>When the large promoter defaults wilfully or
does not co-operate in repayment to the Public Sector Bank, he robs each one of
us taxpayers, even while making it costlier to fund the new investment our
economy needs</i>”.<o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">In a very interesting
conclusion, which has an importance in the present economic scenario, he said
that the solution is not more ‘draconian laws’ (which the large borrower may
well circumvent and which may entrap the small borrower), but a more timely and
fair application of current laws. He said that India needs new institutions such
as Bankruptcy Courts and turn around agents. He concluded that “<i>We need a change in mindset, where the
willful or non-co-operative defaulter is not lionized as a captain of industry,
but justly chastized as a freeloader on the hardworking people of this country</i>”.<o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: "times" , "times new roman" , serif;">Indeed, Dr. Rajan rightly
points out that it is quintessential, we need a change in the mindset to
resolve the ever increasing problems of NPA’s o<a href="https://www.blogger.com/null" name="_GoBack"></a>r else it
will also be rendered like any other law with laudatory intent. It remains to be
seen how far does the Bankruptcy Code remains true to its intent and objective.<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif;"><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><u>Good Bye RBI:</u></span></b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"> The book contains the
letter addressed by Dr. Rajan to the RBI staff. He stated that RBI has done far
more than what was laid out in the initial statement, including helping the
Govt. reform the process of appointing public sector bank management through
the creation of the Bank Board Bureau, creating a whole set of new structures
to allow banks to recover payments from failing projects, and forcing timely
bank recognition of their unacknowledged bad debts and provisioning under the
Asset Quality Review (‘AQR’).<o:p></o:p></span></span></div>
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<span style="font-family: "times" , "times new roman" , serif; font-size: 12pt; text-align: left;"><br /></span></div>
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<span style="font-family: "times" , "times new roman" , serif; font-size: 12pt; text-align: left;">He
stated that, internally, RBI has gone through a restructuring and streamlining,
designed and driven by our own senior staff. He said that “</span><i style="font-family: Times, "Times New Roman", serif; font-size: 12pt; text-align: left;">We are strengthening the specialization and skills of our employees so
that they are second to none in the world</i><span style="font-family: "times" , "times new roman" , serif; font-size: 12pt; text-align: left;">” In the letter addressed to the
RBI staff, he states that “</span><i style="font-family: Times, "Times New Roman", serif; font-size: 12pt; text-align: left;">I am an
academic and I have always made it clear that my ultimate home is in the realm
of ideas. The approaching end of my three-year term, and of my leave at the
University of Chicago, was therefore a good time to reflect on how much we had
accomplished.</i><span style="font-family: "times" , "times new roman" , serif; font-size: 12pt; text-align: left;">”</span></div>
<div style="text-align: left;">
<span style="font-size: 12pt; line-height: 115%;"><span style="font-family: "times" , "times new roman" , serif;"><br /></span></span></div>
<div style="text-align: justify;">
<span style="font-size: 12pt; line-height: 115%;"><span style="font-family: "times" , "times new roman" , serif;">As I said earlier, </span></span><span style="font-family: "times" , "times new roman" , serif; font-size: 16px; text-align: justify;">this book is a must read for all law, commerce and finance students and professionals. As a reader, you will know more about the RBI, its working, co-ordination with other Ministries, etc.</span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<i>Special Thanks to <a href="https://www.facebook.com/aayush.mitruka?ref=br_rs">Aayush Mitruka</a>, a lawyer based in Delhi, for his valuable inputs and suggestions.</i></div>
</div>
Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com5tag:blogger.com,1999:blog-4122062719274234638.post-49932338731199670882015-04-01T00:17:00.001-07:002015-04-01T00:18:32.437-07:00Celebrating 1st Birthday of Companies Act, 2013<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">On the April fool’s day of 2014, the
Companies Act, 2013 (‘Act’) was ‘born’ and since then Govt. and professionals across
India are trying to nurture the ‘new born baby’. For quite a few months, the Act
was referred as ‘New Act’ in various professional journals, TV shows,
interviews, various seminars and conferences. Now, it’s high time that we
consider that the Act is no more ‘new’, and shall be referred to as ‘Companies
Act, 2013’ only.<o:p></o:p></span></span></div>
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<br /></div>
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">Frankly speaking (to which most the
professionals will agree), the journey has not been very smooth for the Act and
probably will not be smooth for next 2-3 years. Top – 10 most debatable issues <i>(can be 50+ also, but restricting myself)</i>
discussed in 2013 – 2014 were:</span></span></div>
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</div>
<ol>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">Deposits – Whether to file Form DPT with RoC? / Whether
to refund or not?</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">RPTs – What is ‘arms length’ & ‘ordinary course of
business’?</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">CSR – Whether the provision is valid & whether the
provision is mandatory?</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 115%; text-indent: -0.25in;">Loans to Directors – </span><i style="line-height: 115%; text-indent: -0.25in;"><span style="color: red;">No need to even explain the way it has affected the corporates.</span></i></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">Auditors Liability to report ‘fraud’</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">‘Independence’ of Director</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">‘Other services’ by Statutory Auditor</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">Scope of Secretarial Audit</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">Status of ‘holding company’ / ‘subsidiary company’</span></span></li>
<li><span style="line-height: 115%; text-indent: -0.25in;"><span style="font-family: Arial, Helvetica, sans-serif;">New wild animals like MGT – 14 & MBP – 1.</span></span></li>
</ol>
<br />
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">Based on this background, the Govt. introduced
Cos. Amendment Bill, 2014 which had trivial issues like: common seal not being
mandatory, minimum paid share capital threshold eliminated, ‘special
resolution’ replacing ‘ordinary resolution’ for RPT compliance etc. – with an
objective to ‘ease of doing business in India’.<o:p></o:p></span></span></div>
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<br /></div>
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">If the govt. actually intended ‘ease of
doing business, then they should have introduced some more amendments, with a
broader perspective and long term vision. Govt. has lost a golden opportunity in
amending the Act and let’s hope that they understand (within these 4 years) that
the business has definitely not eased.<o:p></o:p></span></span></div>
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<br /></div>
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">It will now be a herculean task for the
Govt. to bring another amendment bill, getting it approved by the cabinet and
then passing in LS & RS. Presently, the Companies Amendment Bill, 2014 has
been passed in LS only and not in RS.<o:p></o:p></span></span></div>
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<br /></div>
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">During the 12 months journey, there were
numerous circulars / notifications / clarifications / MOST AWAITED - draft
notification / Removal of Difficulty orders etc. were issued – but all these
have not resolved core issues faced by professionals and India Inc. The draft
notification is / was the only ray of hope for private companies.<o:p></o:p></span></span></div>
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<br /></div>
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">To add more to the instability and uncertainty
in Cos. Act, 2013 – the validity of NCLT matter is before Supreme Court’s Constitution
Bench and there is very high possibility that it will be struck down (Based on
the recent judgments, which struck down NTT or IPAB’s constitution). This is definitely
going to be time consuming process.<o:p></o:p></span></span></div>
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<br /></div>
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<span style="line-height: 115%;"><span style="font-family: Arial, Helvetica, sans-serif;">Considering the industry expectation for
‘doing business easily’ and the govt. offering unwarranted ‘ease’, there is
still a long way to go for the Companies Act, 2013 to settle down. The
professionals need to refer both Acts for few more years as switching
completely to Companies Act, 2013 will take time. The professionals need to be
in their student-rooms for some more time.<o:p></o:p></span></span></div>
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<b><span style="line-height: 115%;"><span style="color: blue; font-family: Arial, Helvetica, sans-serif;">On a lighter note,
Companies Act, 2013 needs Batman (~ Gotham needs Batman).</span></span></b></div>
</div>
Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-59701438400430276472015-02-16T12:04:00.001-08:002015-02-16T19:52:35.960-08:00MCA Order issued to multiply the difficulty & not remove it!!<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Trebuchet MS, sans-serif;">On February 13, 2015 (a
day before Valentines Day) – Ministry of Corporate Affairs – ‘proposed’ to
introduce the <a href="http://www.mca.gov.in/Ministry/pdf/ROD_1st_2015.pdf">first Removal of Difficulty Order (‘RoD
Order’) of 2015</a> to
give some relief to the corporates.</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The RoD Order may have provided ‘relief’ but has definitely raised a fundamental question – Can the MCA
interfere in the wordings of Companies Act? Or broadly speaking, can any Ministry
/ Dept. amend the law without the same being placed & passed by the Parliament?
This is a very crucial question that needs to be answered / studied by all - because,
we would soon celebrate 1 year birthday of Companies Act, 2013 – and many more
RoD Orders, Circulars and Notifications will be issued, which are just creating
confusion.</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Vide RoD Order dated
February 13, 2015, MCA has introduced two amendments: <b>(1)</b> It has clarified the definition of small company, by replacing
the word ‘or’ with ‘and’ i.e. to ensure that company is a ‘small company’ and
satisfies both conditions – prescribed paid share capital <b>AND</b> turnover (earlier, any one condition was required to be
satisfied). Even, before the issue of this RoD Order, some senior professionals
were of the firm opinion that both conditions were required to be satisfied. <b>(2)</b> It has introduced an exception to Section
186 of Companies Act, 2013 (relating to ‘Loans and Investments by Co.’). Not
just one word is replaced, but a whole sentence is introduced, whereby some
companies will be excluded from compliance of Section 186 w.r.t shares acquisition
in ordinary course of business.</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">If the RoD Order (‘amendment
introduced’) is read along with Section 186(11), then Section 186(11)(b)(iv) is:
<i><span style="color: red;">“Nothing
contained in this section, except sub-section (1), shall apply to any
acquisition made by a banking company or an insurance company or a housing
finance company, making acquisition of securities in the ordinary course of its
business.”</span></i></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The RoD Order relating
to Section 186 ought to have been drafted in following way: <i><span style="color: #0b5394;">“Nothing contained in this section, except
sub-section (1), shall apply to any acquisition of securities in the ordinary
course of business by a banking company or an insurance company or a housing
finance company.”</span></i></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">Firmly believe that removal
of difficulty order needs to be renamed as “Multiplying the Difficulty Order”.</span><span style="font-family: Trebuchet MS, sans-serif;"> </span></div>
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<span style="font-family: Trebuchet MS, sans-serif;">The way things are
going for Companies Act, 2013 – I really feel terrible for all the three
professions – CS, CA, CWA. Were we all destined for so much confusion and
ambiguity after years effort on Companies Act?? It’s really distressing to see
professionals fighting on issues like applicability / implementation /
procedural / interpretation. Also, we, as professional are not worried about
the documentation involved in compliance; but we are worried about the
ambiguity in complying in law due to absurd drafting. To top it all,
the Amendment Bill, 2014 has virtually done nothing for the corporates at
large.</span><span style="font-family: Trebuchet MS, sans-serif;"> </span><span style="font-family: Trebuchet MS, sans-serif;">Let’s find procedure to
bring back Companies Act, 1956. We don’t want small co. / CSR / Independent
Directors / onerous Directors Responsibility Statement (which is actually an
‘affidavit’) / class action suits etc. We were happy before!</span></div>
</span></div>
</div>
Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0tag:blogger.com,1999:blog-4122062719274234638.post-51936258993270682252014-11-20T13:16:00.002-08:002015-01-25T07:51:00.946-08:00Emotional Blog, and the first one!<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">With loads of emotions and thoughts process, I finally make my debut in the world of Blog! O</span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">ver a period of time, h</span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">ave gone through quite a few blogs and have observed that people write a lot about social / political / civic and health issues in India & abroad..</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; font-family: Trebuchet MS, sans-serif;"><span style="color: #3d85c6;">This blog is not at all about any social issue, but its a compilation of my thoughts about one of my professional assignments (Teaching) and my experience in it, till now. </span><i><span style="color: red;">Please note that this blog is straight through the heart without intention to criticize any person / organisation. Also, please note that through this communication, I have no intention to blow my own trumpet. Here it goes....</span></i><span style="color: #3d85c6;"><br /></span></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">It all started in Feb. 2013, when I was working with a Chartered Accountant Firm in Pune. One fine afternoon, got a call from CA Pratik Neve and he asked if I can teach one student few subjects of Company Secretary ('CS') Course - Executive Level [Company Law & Securities Laws]. With no second thought, decided to go ahead with the proposal. Had no absolute idea about syllabus content / required teaching hours or day / whether portion will be completed within time or not etc. And most importantly, was experimenting and testing myself - whether i have got requisite skills to teach / explain any concept in Companies Act. Since working, i decided to teach early morning and then leave for office.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">After teaching one student </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">for approximately two months</span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">, believe it or not, had decided to quit my job and start teaching and explore the untapped area of 'Academics'. In the next batch - there were 3 students for CS </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">Executive Syllabus [Company Law & Securities Laws]. Taught this batch, when i was serving my notice period. Quite a few times, had to visit Mumbai for work and the next day, had to take a batch early morning. Travel time was utilised for revising and being thorough with syllabus. </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">CS </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">Executive </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">Exam was in first week of June 2013 and with students co-operation, was able to complete portion by May 15, 2013.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Later, decided to venture into teaching CS Professional Course along with CS Executive Course. It was really amazing feeling to get a good response of students / get their feed backs. The number of students increased manifold and from 4 students in June 2013 attempt, i had (with CA Pratik's grace) 35 students for CS Executive & Professional Course for December 2013 attempt. Was really blessed by such development and student's response. Also got an opportunity to teach CS Executive and Professional students for June 2014 and December 2014 attempt. Probably, the total student count has gone beyond 150.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Have always ensured that students refer Module / Study material provided by ICSI. Even when i prepared notes (for the satisfaction of students), ensured that the information / content is in alignment with study material provided by ICSI. Always feel that, this is the best source to learn from. Ironically,in Pune at least, ICSI study material is the most discouraged material. R</span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">eally feel hurt by weird comments by professionals / professors / teachers on study material. Have always said that study material is prepared by referring 5/8 professional / reference books and ICSI has done commendable job in compiling the same and presenting before students. Some </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">professionals / professors / teachers</span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;"> term the Study material as "raddhi". My only concern is, when students are undergoing 15 months Training / Internship - are not acquainted with full / adequate information - which that </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">professionals / professors / teachers</span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;"> has omitted at the time of preparing notes. Also, the "Notes" are extremely exam oriented with no detailed explanation and all relevant case laws case being omitted. By this, the knowledge of CS Student is very exam-oriented, and probably the student will not grow as "Professional" as expected since, he has not develop the skill of reading the right material at the right time. <b>For ensuring that ICSI study materials are referred by students, some awareness and efforts are required by ICSI, whereby implementation shall be Members of ICSI.</b></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Also, I have observed that teaching, in Pune, atleast has become more of 'business' rather than 'profession' (which ought to be 'noble'). General observation (nothing specific), the professionals / professors / teachers are just involved in 'marketing techniques' to develop a student base rather than focusing on content to be taught. Probably, there could be cheap marketing techniques that are developed to lure / attract students. I am not against the concept of marketing; but I am against the concept of 'cheap marketing'. Also, there is a thin line difference between the two and the best judge to know the difference are respective professionals / professors / teachers. Due to these techniques and strategies, I think that concerned professional / professor / teacher may lose basic essence of teaching i.e. passion to gain knowledge and share the same. Therefore, it's necessary to keep a balance of teaching & marketing. Most importantly, marketing is taken care by providing best teaching services to your students and having some patience to this element.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Teaching is a continuous learning process whereby, the concerned professor is not just required to read / refer the text but he / she is required explain the students practical implication of it by quoting some relevant / known examples. For knowing these examples, the professor / teacher should acquire knowledge by reading related material / newspaper. If this action is not taken, then after teaching two batches, the whole activity of teaching becomes "popat-panchi". The professors / teachers ought to provide adequate information other than study material. You may not believe, but in most of my training sessions - i taught students on subject like - how to read business newspapers, discussed on relevance of corporate news with CS syllabus, discussed relevant provisions in law, discussed and read Notice, Directors Report, Corporate Governance Report etc.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Also, students are not dumb to know the knowledge level of the professor / teacher. They know much better as they have attended sessions of 3 / 4 other professors. What i mean is, never under estimate your student or try to play games with them. "students apne 'baap' hote hain"..!!</span></div>
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<span style="background-color: white; color: #38761d; font-family: Trebuchet MS, sans-serif;"><i>As always said, I request every student to be part of ICSI either as part of active participation / volunteering in ICSI activities because, first, we are first the students / members / torch bearers of ICSI and then of any other class / academy.</i></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Through this blog, would like to mention that due to some other professional commitments, have decided to take a break from teaching for 3-4 months. Will definitely miss drawing flow charts, explaining the concepts and practical implication of the same. Also, will miss "drafting resolutions" in the class, whereby students </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">(actually) </span><span style="background-color: white; color: #3d85c6; font-family: 'Trebuchet MS', sans-serif;">recite resolutions after understanding the knack of drafting it.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Its really heartening for me to even think and write that I wont be able to teach for such time. In the last 2 years, this teaching profession has given me a lot of proud moments - e.g. when students convey their CS results, knowing that your student has scored 70 out of 100 in theory / mundane subject, knowing that students have become qualified CS, understanding that student is now your friend, discussing various provisions Companies Act with students - who are now CS, celebrating Guru Pournima and Teachers day and many more....... Dear Students, it gives me immense pleasure in updating the contact list from "Students" to "Professionals".</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;"><br /></span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Would like to thank CA Pratik Neve, my childhood friend, for introducing me to this profession and maintaining it as profession. Would also like to thank all my students for their continued support and keeping the faith. Ensuring to keep all my students professionally updated.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Adios guys..!</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">Will be back soon!!</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">CS Gaurav Pingle.</span></div>
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<span style="background-color: white; color: #3d85c6; font-family: Trebuchet MS, sans-serif;">(acsgauravpingle@gmail.com)</span></div>
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Gaurav Pinglehttp://www.blogger.com/profile/13314939964230862683noreply@blogger.com0