IBC amendment: Language may hold the key to who can bid
As the government gears up for major changes in the Insolvency and Bankruptcy Code (IBC), those close to drafting these revisions believe the focus is now on getting the language right for ‘’greater clarity’’ in the rulebook. While the basic premise and spirit of the Code will remain the same, the commas and the full-stops in the draft report being prepared by a high-level committee will make interpretation of the law simpler, a source told Business Standard. It could take up to 10 days for this panel reviewing the IBC to finalize its recommendations, he said, adding that the ‘’attempt is always to simplify things’’. The panel report will then be taken up by the legislative department of the government for further changes.
Insolvency norms: Power firms ask for special dispensation
The Association of Power Producers (APP) asked the Reserve Bank of India (RBI) for special relaxation for the power sector in its guidelines on when insolvency proceedings would be triggered. The industry body said the stress in the sector is largely due to irregularity in payment from discoms, regulatory delays, and coal supply constraints, which are beyond the control of power companies. In a letter written to RBI governor Urjit Patel, the APP said discoms delay regular payments by three-four months, and currently receivables to IPPs stand at about Rs 8,300 crore. Additionally, Rs 7,800 crore is stuck due to various delays in receiving orders from regulators.
Board meetings: Companies have to provide video conferencing facility on directors’ request
Board meetings if a director requests for such a facility. It is mandatory for companies to provide video conferencing if a director so desires, said the National Company Law Appellate Tribunal (NCLAT) in a recent ruling. Simply put, the NCLAT has held that it is not the company’s sole prerogative to decide whether video conferencing facility should be provided or not. As per NCLAT’s reading of the Companies Act 2013 along with the framed rules, companies cannot deny the director’s right to participation in Board meeting via video conferencing. The concerned provision (Section 173 (2)) in company law should be taken as a compulsory requirement and not an optional one, the NCLAT has said.
PwC suggests time bound dispute resolution under GST
Global accountancy firm PwC has suggested “time bound” resolution of disputes under the Goods and Services Tax (GST) to make the new indirect tax regime more business friendly. One-time dispute resolution schemes were introduced under the erstwhile regime, but industry has been rigid about adopting such measures for various reasons, PwC said in a report. The government should “seriously look” look at business-friendly measures to put to rest long pending litigations, it said. India rolled out GST on July 1 last year thus subsuming most of the other indirect taxes both at the central as well as states’ level.
Insider info: Sebi moves to plug WhatsApp leaks
The market regulator is weighing tighter oversight to check leakage of privileged company information in the wake of unpublished financial results finding their way into WhatsApp groups, two people aware of the development said. The Securities and Exchange Board of India (Sebi) is considering asking companies to frame a policy on how to handle unpublished price-sensitive information or UPSI, and convey the policy to employees; monitor big share price changes before important events like earnings releases; conduct background checks on employees dealing with such information; identify people involved in major deals and ensure information given to junior or external teams is on a need-to-know basis; and create separate workspaces with secured access for those preparing and discussing issues that are price-sensitive.
Allahabad Bank moves NCLT against 2 West Bengal transport department entities
Allahabad Bank has moved the Kolkata bench of the National Company Law Tribunal (NCLT) seeking insolvency resolution at two state-owned enterprises under West Bengal’s transport department. In two separate petitions, the Kolkata-based lender has alleged that West Bengal Surface Transport Corp. Ltd (WBSTC) and West Bengal Transport Infrastructure Development Corp. Ltd (WTIDC) had borrowed money to buy buses under the Jawaharlal Nehru National Urban Renewal Mission in December 2009 but hasn’t still repaid the loans.
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