Corporate Law

NATIONAL LAW UNIVERSITY, NAGPUR

COURSE OUTLINE B.A.LL.B.(HONS.) PROGRAMME SEMESTER-VI (Dec 2018-May 2019) ACADEMIC SESSION: 2018-2019 6.3: CORPORATE LAWS-II

Chamarti Ramesh Kumar, OSD (Academics) Sumit Bamhore, Research Associate

Academic Year: 2018-2019

(Strictly for Private Circulation)

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NATIONAL LAW UNIVERSITY NAGPUR B.A. LL. B. (Hons.) SEMESTER-VI CORPORATE LAWS-II Semester Course Code Course Credit Maximum Marks Teaching Hours Tutorial Presentation Hours

December 2018-May 2019 6.3 04 100 64 26

Methodology The teaching methodology shall be a combination of lecture method as well as interactive modes of teaching such as class/group discussions, tutorials and case analyses. ICT-based smart learning aids such as usage of power point presentations, etc. shall be made use wherever required. Preparatory/supplementary reading material, in addition to the prescribed reading material, shall be provided in advance to the students in order to enable them to participate in the forthcoming lectures. Course Evaluation Method The course is assessed for 100 marks with a close examination system. There shall be a mid-semester exam for 20 marks of seventy-five minutes duration and end-semester exam for 50 marks of two hours. 25 marks are assigned for the project component (out of which 20 marks for the written project and 5 marks for the presentation) and 5 marks are assigned for class attendance. Learning Outcomes Corporate Law-I dealt some basic principles of company, from its incorporation to Management. This Course will deal with dissolution of Companies, SCRA, SEBI statutes which have a huge impact on functioning of companies and other important concepts like insider trading, fraudulent transactions in the securities’ market and concept of credit rating. Further, to look into the legal framework which provides protection to investors. Furthermore, Mergers, Amalgamation, Compromises, Acquisition and Takeovers will be studied in brief. Module I Winding Up, Liquidation & Dissolution of Companies Winding Up of the Company and Defunct Companies; Modes of Winding Up (a) Compulsory Winding Up–Winding up under Just & Equitable Clause (b) Voluntary Winding Up (Members & Creditors WU); Official Liquidator–Role, Powers & Functions; Preferential payments–Workmen’s Rights and Payments during Winding up; Insolvency and Winding Up; Final meeting of shareholders and Dissolution of Company Cases:  Pawan Kumar K v Kaushal Leather Board Ltd. (1996) 87 CC 130 (AP) 2

 Hariprasad v Amalgamated commercial Trans Pvt. Ltd. (1964) 1 CLJ 339 Mad. (DB)  National Textile Workers Union v Ramakrishnan (1983) 54 CC 184 (SC)) Lord Krishna Bank Ltd. v Express (Malayalam) (2005) 125 CC 655 (Ker)  Kudremukh Iron Ore Co. Ltd v Kooky Roadways P Ltd. (1990) 69 CC 178 (Karn) (DB)  Rhein Chemie Rheinau Gmbh v. Standard Oil Additive P. Ltd.; (2005) 128 Comp Cas 13  Mediqup Systems P Ltd v Proxima Medical System GmbH (2005) 124 Comp Cas 473  Tata Iron & Steel Co. Ltd v Micro Forge (India) Ltd. (2001) 104 CC 533 Guj.  ICICI v Vanjinad Leather Ltd. ((1998) 91 CC 625 Ker, (Recovery Under Debt Tribunal)  Jitendra Nath Singh v OL, CIVIL APPEAL NO.6755 OF 2012, 21 September, 2012  Allahabad Bank v Canara Bank, (2000) 4 SCC 406  Andhra Bank v OL, (2005) 5 SCC 75 Module II Securities Contract (Regulation) Act 1956 A. Regulation of certain transaction in the securities market. Corporatization, demutualization - Options in securities- buying and selling in Future Trading B. Stock Exchanges- BSE, NSE, NASDAQ, London Stock Exchange- Stock exchanges, functions and significance of stock exchanges- OTCEI- SENSEX-Nifty Index. Powers of the Central Government C. Conditions of Listing and Delisting Cases:  Brooke Bond India Ltd v UB Ltd & Other  Satish Nayak v Cochin Stock Exchange AIR 1995 Ker 373  Seijal Rikeeen Dalal v. Stock Exchange Bombay AIR 1991 Bom 30  Jagdish Kumar v. P Srinivasan AIR 1995 Kant 420  Vinay Babna v. Stock Exchange, Mum. AIR 1999 SC 2517 Module III Securities Exchange Board of India Act, 1992 (SEBI) Establishment of the Board-protection of the investor-development & regulation of securities market. Securities Appellate Tribunal; SEBI Regulations on Prospectus, Stock Brokers, Insider Trading, Acquisition of Securities and Control; SEBI (Insider Trading) Regulation & SEBI (Acquisition & Transfer of Shares) Regulation. Cases:  SEBI v Daichii (2010)  Swedish Match AB v. SEBI, AIR 2004 SC 4219  Clariant International Ltd. v. SEBI, AIR 2004 SC 4236.  B. S. E. Brokers Forum, Bombay v. SEBI, AIR 2001 SC 1010. 3

 Reserve Bank of India v. Peerless General Finance and Investment Company Ltd., AIR 1996 SC 646.  Bombay Stock Exchange v. Jaya I. Shah, AIR 2004 SC 55.  Vinay Bubna v. Stock Exchange, Mumbai, AIR 1999 SC 2517  BPL v SEBI,  Sterlite Industries Ltd v SEBI,  Karnavati Fincap Ltd v SEBI, 1996 87 C/C 186 (Guj)  SEBI v Alka Sythesis, 1999 19 SCL 460  Praful Patel v SEBI, 2000 CLC 1869 (Bom). Module IV Mergers and Amalgamations Meaning of Corporate Restructuring– objective and scope; Impact of restructuring or scheme, Planning, advantages; Importance of Due Diligence; Formulation–by Sale of Undertaking by Sale of Shares, Mergers, Amalgamation, Acquisition of shares, Takeover, Compromise etc. e.g. Vodafone-Hutch & Essar, Tata-Corus, Mittal’s acquisition’s, Barclays-ABN Ambro, Ranbaxy & Daichii, etc.; Information to Creditors and Members; Demerger or splits and Reconstruction of Companies. Cases:  Hindustan Lever Employees’ Union v. Hindustan Lever Ltd. AIR 1995 SC 470.  Administrator, U. T. I. v. Garware Polyster Ltd, AIR 2005 SC 2520.  Miheer H. Mafatlal v. Mafatlal Industries Ltd., AIR 1997 SC 506.  J. K. (Bombay) Private Ltd., M/s. v. M/s. New Kaiser-I-Hind Spinning and Weaving Co., Ltd. AIR 1970 SC 1041.  S.K. Gupta v. K. P. Jain. AIR 1979 SC 734.  Hindustan Lever v. State of Maharashtra, AIR 2004 SC 326.  Maharastra Apex Corp Ltd, Re 2005 5 Com L J 78  SEIL Ltd, re. 2004 122 Com LJ 369 (Del)  Hindustan Ltd, re 1994 81 C/C 754 Bom  Sidhpur Mills Co Ltd, re AIR 1962 Guj 305  Ansys Software Corp Ltd, Re 2005 25 SCL 187 (Cal DB)  Mafatlal Industries Ltd, re 1995 84 C/C 230 (Guj)  Dena Bank Ltd, re 1976 46 C/C 541  Jindal (India) Ltd, In re, 1998 93 C/C 890 Del ,

Module V Credit Rating and Evaluation of Risk Concept, scope and significance; Benefit to investors-Regulatory framework. Credit Analysis & Research Ltd. (CARE) ***

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