The liabilities of a principal employer under the Contract Labour Act are examples of vicarious liability on owners of establishments. The Contract Labour Act provides respite and recourse to contract labour from non-payment of wage by allowing them access to the principal employer in the event of a default by the contractor. A "principal employer"... Continue Reading →
Visiting the mythical notion of non-compete in the Indian contractual scenario
It is a common perception amongst entrepreneurs and businessmen that inclusion of a clause in any agreement restraining the other party from competing with itself is an effective protection. While no surprise to those initiated in the ways of the law, it comes as a shock to the others when you tell them this is... Continue Reading →
Special Courts: Blurring of boundaries or an unnecessary evil?
This innocuous little chapter 28 (dealing with Special Courts) has been one of the least discussed and debated chapters of the Companies Bill, 2012. Neither the Parliament nor the media appears to have paid any attention to it. I can only imagine, this is so, because as a country we have become accustomed to specialist... Continue Reading →
FDI in multi-brand retail: Reading between the fuzzy lines
Multi-brand retailing has been the hot bed of political strife in the recent past and not without good reason. One needs to weigh enormous amounts of investment into the country (including in infrastructure) against livelihoods of farmers, protection to local retailers and monopolization of or dominance over essential day-to-day products. Through Press Note 5 (2012... Continue Reading →
Reading Between the Lines: Corporate Social Responsibility
The Companies Bill, 2012 under Clause 135, has made it mandatory for Indian companies (who meet the criteria provided below) to work towards social objectives. These companies will have to spend a portion of their income on policies framed by their Boards towards the fulfillment of their social responsibilities. Corporate Social Responsibility (CSR) aims to... Continue Reading →
Indian Corporate Governance: Will SEBI successfully plug all the gaps?
This is further to my blog post on independent directors. SEBI is looking to go beyond the provisions of the Bill, and further tighten the norms of corporate governance. Additional responsibilities and obligations will be cast on independent directors. SEBI is of the view that any code of Corporate Governance must be dynamic, evolving and... Continue Reading →
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