The Companies (Amendment) Act, 2017, which received presidential assent and was notified on 3 January 2018, has amended various definitions under the Companies Act, 2013. Some of the important amendments to definitions include the following:
Associate company. An associate company to another company under the 2013 act means a company in which such other company has a significant influence. While the act defined “significant influence” as control of at least 20% of the total share capital or of business decisions under an agreement, the amendment has modified this to make it control of at least 20% of the “total voting power, or control of or participation in business decisions under an agreement”. In other words, the amendment links the concept of significant influence in determining an associate company with control over voting power, rather than control over share capital. The contours of significant influence have also been expanded to include even instances where there is participation in business decisions of the company under an agreement.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley, Munich and New York. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
