Government promulgates ordinance to amend the Companies Act, 2013
In a bid to improve the corporate governance standards and ease compliance for companies, the government promulgated an ordinance bringing about significant changes to the Companies Act, 2013 (“Ordinance”). These changes have been made pursuant to the recommendations made by the Committee to review the offences under the Companies Act, 2013. The Ordinance aims to strengthen in-house resolution mechanisms by shifting 16 types of corporate offences from special courts to in-house adjudication. Further, the Ordinance has reduced the fines and penalties for small and one-person companies to half of the applicable fines and penalties that are applicable for normal companies.
GameChanger Views:
- By reducing the amount of fines and penalties applicable on small and one person companies, reduction of the compliance burden on smaller companies which have lesser resources and limited finances.
Competition Commission rejects price fixing claims against Ola and Uber
The Competition Commission of India (“CCI”), passed an order in the case of Samir Agrawal vs. ANI Technologies Pvt Ltd and Ors rejecting all claims of price fixing and cartelization against Ola and Uber. The Informant in the present case, stated that there was an informal agreement between the Ola, Uber and their drivers over setting fares where customers had no bargaining power. In response to this, the CCI held that as (i) fares were determined by certain distinct algorithms created and owned by Ola and Uber respectively; and (ii) as there was no sharing of information between Ola and Uber; that were was no meeting of the minds between the companies and that therefore, there was no case of price fixing or cartelization.
GameChanger Views:
- Through this judgement, the CCI has reinstated that for a case of price fixing or cartelization to be made against any party, it is essential that there needs to be some agreement, either in writing or in understanding, between the parties with the intention of fixing a base price.
SIDBI will start rating venture capital firms. Will provide funding on the basis of the rating
The Small Industries Development Bank of India (“SIDBI”) in currently working on a new model whereby it will give a rating to every venture capital fund in India. SIDBI will invest in the venture capital fund from the INR 10,000 crore fund of funds created by the Government of India on the basis of the rating given to each venture capital fund. Currently, there are no guidelines that SIDBI needs to follow before investing in venture capital funds.
GameChanger Views:
- As a result of developing these standards, we see an increase in transparency and efficiency in the manner in which SIDBI invests in venture capital firms. This will however, depend on the criteria that SIDBI will use whilst rating the venture capital firms. If SIDBI uses arbitrary criteria like client satisfaction, it may lead to further arbitrariness.
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