Corporate Updates – 18-03-2016


The Government on March 17, 2016 introduced in the Lok Sabha a bill to further amend the Companies Act, 2013. The bill seeks to simplify private placement process, remove restrictions on layers of subsidiaries and investment companies, amend CSR provisions to bring greater clarity and exempt certain class of foreign entities from the compliance regime under the Act. Other recommendations include proposal to allow unrestricted object clause in the Memorandum of Association dispensing with detailed listing of objects, self-declarations to replace affidavits from subscribers to memorandum and first directors; introduction of test of materiality for pecuniary interest for testing independence of independent directors, removal of requirement for annual ratification of appointment or continuance of auditor and instead of the requirement of central government approval for managerial remuneration above a prescribed limit, the bill proposes clearance through special resolution by shareholders.

IPR – Trade Mark:

Ministry of Commerce & Industry has proposed to introduce new rules for Trademark Registration. The existing Trade Marks Rules 2002 are proposed to be replaced by the Trade Marks (Amendment) Rules, 2015. The proposed Trade Marks (Amendment) Rules, 2015 have already been published in the Gazette of India and has been made available in the official web site of Department of Industrial Policy and Promotion and in the website of the Controller General of Patents, Designs and Trade Marks for inviting suggestions/ comments from the general public and stakeholders. The proposed amendment will bring a major relief by reducing the number of Trademark forms; the fee for electronic filing will be kept lower than that for physical filing. The amendment also seeks to introduce modalities for determination and maintenance of the list of well-known trademarks; procedures relating to registration as Registered User of trademarks are also proposed to be simplified.

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