Blog Content Overview
- 1 Treelife Resources
- 1.1 Explore our resources to fuel your success and propel your business forward.
- 1.2 Latest Posts
- 1.2.0.1 Accel invests $9 million in luggage brand Uppercase; valuation doubles…
- 1.2.0.2 Refund of Application Monies: A Critical Aspect of Corporate Governance
- 1.2.0.3 FDI & ODI Swap following Budget 2024
- 1.2.0.4 IFSCA Informal Guidance Framework
- 1.2.0.5 Upcoming Compliances for Private Limited Companies in the FY2024-25
- 1.3 Thought Leadership
- 1.4 𝘖𝘵𝘩𝘦𝘳 𝘢𝘮𝘦𝘯𝘥𝘮𝘦𝘯𝘵𝘴:
- 1.5 𝐖𝐡𝐨 𝐜𝐚𝐧 𝐫𝐞𝐪𝐮𝐞𝐬𝐭:
- 1.6 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞:
- 1.7 𝐏𝐫𝐨𝐜𝐞𝐬𝐬:
- 1.8 Important Steps
- 1.9 The ‘Transaction Flow’ – A Founders’ perspective
- 1.10 Conclusion
- 1.11 Criteria for Work to Qualify as a “Work for Hire”
- 1.12 “Work for Hire” In The United Kingdom
- 1.13 “Work for Hire” In The United States
- 1.14 “Work for Hire” In India
- 1.15 Similarities and Differences between U.K., U.S., and Indian Approaches
- 1.16 Emerging Trends and Future Outlook
- 1.17 Practical Considerations for Creators and Employers
- 1.18 Conclusion
- 1.19 What is Legal Metrology?
- 1.20 How Does It Work?
- 1.21 What a Consumer Should Know?
- 1.22 What a Business Owner (For Consumer Goods) Should Know?
- 1.23 Challenges and Moving Forward
- 1.24 Conclusion
- 1.25 Understanding Governing Law Clauses
- 1.26 Importance of Governing Law
- 1.27 Exploring Jurisdiction Clauses
- 1.28 Key Considerations in Jurisdiction Clause Drafting
- 1.29 Conclusion
- 1.30 𝐖𝐡𝐨 𝐜𝐚𝐧 𝐫𝐞𝐪𝐮𝐞𝐬𝐭:
- 1.31 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞:
- 1.32 𝐏𝐫𝐨𝐜𝐞𝐬𝐬:
- 1.33 We Are Problem Solvers. And Take Accountability.
Latest Posts
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September 5, 2024 | Deal Street
Accel invests $9 million in luggage brand Uppercase; valuation doubles…
Read More![Resources Resources](https://treelife.in/wp-content/uploads/2024/09/refund.png)
September 5, 2024 | Legal
Refund of Application Monies: A Critical Aspect of Corporate Governance
Read More![Resources Resources](https://treelife.in/wp-content/uploads/2024/09/fdi-odi-swap.webp)
![Resources Resources](https://treelife.in/wp-content/uploads/2024/09/IFSCA-GUIDANCE.jpg)
![Resources Resources](https://treelife.in/wp-content/uploads/2024/09/upcoming-compliance.webp)
September 5, 2024 | Calendar
Upcoming Compliances for Private Limited Companies in the FY2024-25
Read MoreThought Leadership
![Refund of Application Monies: A Critical Aspect of Corporate Governance Refund of Application Monies: A Critical Aspect of Corporate Governance](https://treelife.in/wp-content/uploads/2024/09/refund.png)
Refund of Application Monies: A Critical Aspect of Corporate Governance
The Companies Act, 2013 (the “Act”), has introduced significant changes to the rules governing application monies received by companies through private placement and preferential allotment of shares, aiming at enhanced transparency, protection of investor interests, and ensuring timely utilization of funds.
This article outlines the key provisions and implications of non-compliance regarding the refund of
application monies under the Act.
![FDI & ODI Swap following Budget 2024 FDI & ODI Swap following Budget 2024](https://treelife.in/wp-content/uploads/2024/09/fdi-odi-swap.webp)
FDI & ODI Swap following Budget 2024
Following the recent budget announcement, which aimed to simplify regulations for Foreign Direct Investment (FDI) and Overseas Investment (ODI), the Department of Economic Affairs has amended the FEMA (Non-debt Instruments) Rules 2019. A significant aspect of this amendment is the introduction of a new provision that enables FDI-ODI swaps. We have curated a slide below to help you understand this better.
![FDI & ODI Swap following Budget 2024 FDI & ODI Swap following Budget 2024](https://treelife.in/wp-content/uploads/2024/09/1724226544080-page-001-1024x576.jpg)
𝘖𝘵𝘩𝘦𝘳 𝘢𝘮𝘦𝘯𝘥𝘮𝘦𝘯𝘵𝘴:
1. Investment by OCIs on non-repat basis 𝐞𝐱𝐜𝐥𝐮𝐝𝐞𝐝 from calculation of indirect foreign investment. Earlier only NRI investment was excluded.
2. Aggregate FPI cap of 49% of paid-up capital on a fully diluted basis has now been removed. FPIs now required to 𝐨𝐧𝐥𝐲 𝐜𝐨𝐦𝐩𝐥𝐲 𝐰𝐢𝐭𝐡 𝐬𝐞𝐜𝐭𝐨𝐫𝐚𝐥 𝐨𝐫 𝐬𝐭𝐚𝐭𝐮𝐭𝐨𝐫𝐲 𝐜𝐚𝐩.
3. ‘White Label ATM Operations’ has been recognized as a new sector, with 100% 𝐅𝐃𝐈 𝐧𝐨𝐰 𝐚𝐥𝐥𝐨𝐰𝐞𝐝 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐚𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐜 𝐫𝐨𝐮𝐭𝐞.
Key Indian players in this sector: India1 Payments, Indicash ATM (Tata Communications), Vakrangee, and Hitachi Payments.
4. NR to NR transfer will require prior Govt approval 𝐰𝐡𝐞𝐫𝐞𝐯𝐞𝐫 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞. In the erstwhile provisions, it was required only if investment in the specific sector required prior Govt approval.
5. Definitions – Control now defined in Rule 2, and definition of “startup company” has been aligned with “startups” recognised by DPIIT vide notification dated February 19, 2019. Definitions of “control” and “startup company” elsewhere have been deleted.
![IFSCA Informal Guidance Framework IFSCA Informal Guidance Framework](https://treelife.in/wp-content/uploads/2024/09/IFSCA-GUIDANCE.jpg)
IFSCA Informal Guidance Framework
Blog Content Overview
The IFSCA issued a consultation paper yesterday proposing an “informal guidance” framework, summarized below:
𝐖𝐡𝐨 𝐜𝐚𝐧 𝐫𝐞𝐪𝐮𝐞𝐬𝐭:
- Existing players in IFSCA
- Persons intending to undertake business in IFSC
- Others as may be specified
𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞:
- No-Action Letters: Request IFSCA to indicate whether or not it would take any action if the proposed activity/ business/ transaction is carried out
- Interpretive Letters: Request for IFSCA’s interpretation of specific legal provisions
𝐏𝐫𝐨𝐜𝐞𝐬𝐬:
Application fee: USD 1,000
IFSCA aims to respond to requests within 30 days
The consultation paper invites stakeholders / public to submit feedback by September 10, 2024 via email This is a proactive approach by the IFSCA to foster transparency and provide support to entities operating or looking to operate within the IFSC, ensuring that they have the necessary guidance to comply with the evolving regulatory landscape.
![Upcoming Compliances for Private Limited Companies in the FY2024-25 Upcoming Compliances for Private Limited Companies in the FY2024-25](https://treelife.in/wp-content/uploads/2024/09/upcoming-compliance.webp)
Upcoming Compliances for Private Limited Companies in the FY2024-25
As the financial year progresses, it is crucial for businesses and directors to stay informed about upcoming compliance deadlines to avoid penalties and ensure smooth operations. Here is an overview of the key upcoming compliance requirements to be reported by Companies to the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013 (Act):
![IIT-M start-up Planys Technologies raises ₹43 crore in round led by investor Ashish Kacholia IIT-M start-up Planys Technologies raises ₹43 crore in round led by investor Ashish Kacholia](https://treelife.in/wp-content/uploads/2024/08/Planys-800x400-1.jpg)
![Refund of Application Monies: A Critical Aspect of Corporate Governance Refund of Application Monies: A Critical Aspect of Corporate Governance](https://treelife.in/wp-content/uploads/2024/09/refund.png)
Refund of Application Monies: A Critical Aspect of Corporate Governance
The Companies Act, 2013 (the “Act”), has introduced significant changes to the rules governing application monies received by companies through private placement and preferential allotment of shares, aiming at enhanced transparency, protection of investor interests, and ensuring timely utilization of funds.
This article outlines the key provisions and implications of non-compliance regarding the refund of
application monies under the Act.
![Demystifying the 'Transaction Flow' of VC Deals Demystifying the 'Transaction Flow' of VC Deals](https://treelife.in/wp-content/uploads/2024/08/transaction-flow-vc-deals.jpg)
Demystifying the ‘Transaction Flow’ of VC Deals
Blog Content Overview
The ‘transaction flow’ refers to the various stages involved in a Company obtaining funding from an Investor. Given that this imposes numerous obligations on the Company and the Founders, it becomes critical for Founders to have a clear understanding of the steps involved in receiving funding from an Investor. However, fledgling startups often find the complex terms involved overwhelming and are thus unable to gain a clear picture of the process flow involved in raising funding.
Important Steps
- Term Sheet – a non-binding agreement that outlines the basic terms and conditions of the transaction.
- Transaction Documents – refers to the agreements required to be entered into between the parties to lay down the governing framework of the investment. This would typically take the form of a securities subscription agreement (“SSA”) and a shareholders’ agreement (“SHA”), or a variation of the same known as a securities subscription and shareholders’ agreement (“SSHA”). These agreements will contain detailed language on the nature of each party’s rights and obligations under the contract and will be binding on the parties.
- Execution – refers to the stage where the parties actually sign and ‘execute’ the Transaction Documents, validating the same and binding the parties to the terms agreed.
- Conditions Precedent – refers to the conditions required to be completed by the Company and/or Founders to the Investor’s satisfaction before the investors wire the funds to the Company’s bank account (also referred to as Closing). The conditions precedent shall be completed in parallel with execution of transaction documents so that there is no delay in Closing.
- Closing – refers to the stage at which the funds are received by the company and securities are allotted to the Investors.
- Conditions Subsequent – refers to the conditions required to be completed by the Company and/or Founders after Closing, typically include conditions arising out of due diligence of the company and other compliance related steps.
The ‘Transaction Flow’ – A Founders’ perspective
Important Terms | Points to bear in mind for Founders |
---|---|
Term Sheet | A Term Sheet helps layout the structure for the Transaction Documents and can help establish the negotiated position on critical terms early in the process, which in turn, enables a quick flow from drafting and vetting of agreements to Execution. Term Sheets are non-binding and the terms, although not advisable, but, can vary in the transaction documents. |
Due Diligence | A due diligence exercise reviews the records maintained by the Company to ascertain whether the Company’s operations are in accordance with the applicable law. The findings are then highlighted to the Investors basis the magnitude of risk involved in a due diligence report.
Typically, startups have trouble ensuring the secretarial compliances prescribed under Companies Act, 2013 (and relevant rules thereunder) or compliances prescribed under labour legislations, and rectifying the same is made a Condition Precedent or a Condition Subsequent. This would vary from Investor to Investor, based on how risk averse they are. |
Transaction Documents | In the event that the Company has already completed previous round(s) of funding, Founders must pay heed to the rights of existing Investors and ensure that the appropriate waiver of rights (as applicable) is captured in the agreements. Further, in case of an existing SHA with Investors from earlier rounds of funding, the parties would execute an amendment to SHA or a complete restated SHA, which would be signed by all shareholders of the Company, in addition to the incoming Investors. Consequently, the transaction documents would require consensus of terms from both existing and incoming Investors.
It is also important to note that employment agreements between the Founder(s) and the Company (sometimes prescribing specific conditions of employment by Investors) are often made part of this stage. |
Execution | Every agreement would require payment of stamp duty to the competent state government. The duty payable varies from state to state and agreement to agreement, and is either a fixed value or a percentage (%) value of the investment amount (i.e., the ‘consideration’). The Stamp papers are required to be procured prior to the execution of the transaction documents.
Execution can be done through either wet ink or digital signatures. |
Conditions Precedent | This usually encompasses a variety of obligations on the Company/Founders. Typically, completion of this stage is marked by a “Completion Certificate” issued by the Company.
We can broadly categorise Conditions Precedent into two headings: (a) statutorily mandated conditions; and (b) Investor mandated conditions.
|
Closing | This stage is marked by movement of funds from the Investors and related compliances to be undertaken under law/the Transaction Documents to complete the allotment of securities, such as: filing of PAS-3, issue of share certificates, amending the articles of association, compliance with Foreign Exchange Management Act, 1999 (including filing form FC-GPR reporting the remittance received), appointment of directors, etc.
It is critical to understand that this is the stage at which the Investors actually become shareholders of the Company. |
Conditions Subsequent | Conditions subsequent are usually required to be completed within a specific period after the Closing Date (i.e., the date on which Closing takes place).
These can include items such as amendment of articles of association and memorandum of association of the Company or even statutory filings (such as under Companies Act, 2013 or Foreign Exchange Management Act, 1999). However, this can also include special items mandated by the Investors such as appointment of a labour law consultant or privacy law consultant to ensure that the Company is in compliance with applicable laws that might be too complex for the Founders to navigate without professional expertise. |
Conclusion
It is important to realise that every Investor is different and therefore the ‘transaction flow’ can look different for two different rounds of funding for the same Company. The above terms are simplified for Founders to gain an understanding of what to expect when preparing to raise funding. Founders who are aware of the intricacies involved in raising funding can:
- be better prepared in structuring the round;
- gain an understanding of the ancillary costs roughly involved; and
- negotiate a position that allows for the completion of certain action items in a manner that does not cause significant financial strain or undue delay in reaching the Closing stage.
Reach out to us at [email protected] to discuss any questions you may have!
![Doctrine of Work for Hire doctrine of work for hire](https://treelife.in/wp-content/uploads/2024/08/work-for-hire.webp)
Doctrine of Work for Hire
Blog Content Overview
- 1 Criteria for Work to Qualify as a “Work for Hire”
- 2 “Work for Hire” In The United Kingdom
- 3 “Work for Hire” In The United States
- 4 “Work for Hire” In India
- 5 Similarities and Differences between U.K., U.S., and Indian Approaches
- 6 Emerging Trends and Future Outlook
- 7 Practical Considerations for Creators and Employers
- 8 Conclusion
The doctrine of “work for hire” is a legal concept that determines the ownership of a copyrighted work when it is created in the context of an employment relationship or under a specific contractual arrangement. The purpose of this doctrine is to establish clarity regarding the rights and ownership of creative works, particularly when multiple parties are involved in the creation process.
Criteria for Work to Qualify as a “Work for Hire”
To qualify as a “work for hire,” certain criteria must be met, although the specifics may vary depending on the jurisdiction. Generally, the following elements are considered:
- Employee-Employer Relationship: In an employment scenario, the work created by an employee within the scope of their employment duties is automatically considered a “work for hire.” The employer is deemed the legal author and owner of the copyright.
- Commissioned Works: In some cases, a work may be commissioned from an independent contractor, such as a freelancer or consultant. For such works to be categorized as “works for hire,” there must be a written agreement explicitly stating that the work is a “work for hire” and that the commissioning party will be considered the legal owner of the copyright.
It is important to note that different jurisdictions may have variations in the specific requirements and definitions of a “work for hire.” Therefore, it is essential to consult the copyright laws of the relevant jurisdiction for a comprehensive understanding.
“Work for Hire” In The United Kingdom
In collaborative scenarios, where multiple parties contribute to the creation of a work, it becomes necessary to ascertain the ownership of the copyright. The terms of the collaboration agreement and the intentions of the parties involved play a crucial role in such cases.
The case of Creation Records Ltd v. News Group Newspapers Ltd [1997] EMLR 444 shed light on this issue. The court considered a situation where a photograph was taken by a photographer for a newspaper article. The court emphasized the importance of the contractual arrangements and the intention of the parties involved in determining the ownership of the copyright. The photographer, in this case, retained the copyright as the collaboration agreement did not clearly transfer it to the newspaper.
“Work for Hire” In The United States
In the United States, the concept of “work for hire” is extensively addressed under the Copyright Act of 1976. According to Section 101 of the Act, a work qualifies as a “work for hire” if it is:
Prepared by an Employee: The work must be created by an employee within the scope of their employment duties. In such cases, the employer is considered the legal author and owner of the copyright.
The landmark case of Community for Creative Non-Violence v. Reid (490 U.S. 730, 1989) explored the scope of an employment relationship and ownership of a work. The Supreme Court considered factors such as the control exerted by the employer, the provision of employee benefits, and the nature of the work to determine whether the work was a “work for hire.” The court ultimately ruled that the work in question did not meet the criteria for a “work for hire,” and the copyright ownership remained with the creator.
“Work for Hire” In India
In India, the concept of “work for hire” is not explicitly defined in copyright legislation. However, the Copyright Act, 1957, does provide provisions related to the ownership of copyright in works created in the course of employment. The case of Eastern Book Company v. D.B. Modak (2008) addressed the ownership of copyright in works created by employees. The court held that if an employee creates a work during the course of their employment and it falls within the scope of their duties, the employer will be considered the first owner of the copyright unless there is an agreement to the contrary.
When it comes to works created by freelancers or under contractual arrangements, the ownership of copyright is typically determined by the terms of the agreement between the parties involved. In the case of Indian Performing Right Society v. Eastern Indian Motion Pictures Association (2012), the court emphasized the importance of contractual arrangements and the intent of the parties involved in determining copyright ownership. The court ruled that the ownership of copyright rests with the party who commissions the work unless otherwise specified in the agreement.
Similarities and Differences between U.K., U.S., and Indian Approaches
The U.K., U.S., and India have different approaches to the “work for hire” doctrine. While all jurisdictions consider the employment relationship and written agreements as important factors, the specific criteria and legal provisions differ. The U.S. has a more detailed statutory framework for “works for hire,” while the U.K. and India rely on case law and contractual agreements to determine copyright ownership.
Emerging Trends and Future Outlook
- Evolving Nature of Employment Relationships: The nature of employment relationships is undergoing significant changes, driven by factors such as the gig economy, remote work, and freelance culture. These developments pose new challenges in applying the doctrine of “work for hire.” The line between employee and independent contractor can become blurred, making it more complex to determine copyright ownership. As the workforce becomes more flexible and diverse, legal frameworks may need to adapt to address these evolving employment relationships.
- Influence of Technology and Remote Work: Advancements in technology have transformed the creative industries, enabling collaboration and work across geographical boundaries. Remote work has become more prevalent, and creative projects often involve contributors from different locations. This raises questions about jurisdictional issues and the application of copyright laws in cross-border collaborations. Clear contractual agreements and international harmonization of copyright laws may be necessary to provide guidance and ensure fair treatment of creators.
Practical Considerations for Creators and Employers
- Clear Contractual Agreements: Creators and employers should prioritize clear and comprehensive contractual agreements that address the issue of copyright ownership explicitly. These agreements should clearly define the scope of work, the intended ownership of copyright, and any limitations or conditions related to its use, licensing, or transfer.
- Negotiating Fair Terms: Creators, especially freelancers and independent contractors, should be proactive in negotiating fair terms that protect their rights and interests. This may involve discussing ownership, compensation, attribution, moral rights, and the ability to use their work for self-promotion or future projects.
- Consultation with Legal Professionals: Seeking legal advice from professionals well-versed in copyright law is crucial, particularly when dealing with complex projects or cross-jurisdictional collaborations. Legal experts can provide guidance, ensure compliance with relevant laws, and help draft contracts that protect the rights of creators while meeting the needs of employers.
- Awareness of Jurisdictional Differences: When engaging in international collaborations, it is important to have a thorough understanding of the copyright laws and regulations in the relevant jurisdictions. Being aware of jurisdictional differences can help parties anticipate potential conflicts and take proactive measures to address them through appropriate contractual provisions.
- Regular Review and Updates: Contracts and agreements should be periodically reviewed and updated to reflect changes in circumstances, business relationships, or legal frameworks. Regularly revisiting contractual arrangements can help ensure that they remain relevant and provide adequate protection to all parties involved.
- Collaboration and Communication: Open and transparent communication between creators and employers is essential for a successful working relationship. Engaging in discussions about copyright ownership, expectations, and any potential issues can help prevent misunderstandings and disputes down the line.
Conclusion
In conclusion, the doctrine of “work for hire” under copyright law is a complex and significant concept that determines copyright ownership in various employment and contractual relationships. Through our critical survey of cases in the United Kingdom, United States, and India, several key insights emerge. In India, while there is no explicit provision for “work for hire,” the Copyright Act recognizes the ownership of copyright in works created during the course of employment. Ownership in freelance and contractual arrangements is determined by the terms of the agreement. Throughout our survey, it becomes apparent that clear and explicit contractual agreements are vital in all jurisdictions to address copyright ownership and prevent disputes.
![Demystifying Legal Metrology Rules in India: Ensuring Fairness in Everyday Transactions Legal metrology](https://treelife.in/wp-content/uploads/2024/08/legal-metrology.webp)
Demystifying Legal Metrology Rules in India: Ensuring Fairness in Everyday Transactions
Blog Content Overview
In the bustling markets and stores of India, where buying and selling happens every day, there’s a set of rules quietly at work to make sure you get what you pay for. These acts and rules are colloquially known as ‘Legal Metrology’. The rules are intended to make sure that measurements and weights used in trade are accurate and fair, and are represented to the consumer clearly. The rules are enforced by the Legal Metrology Division, which is managed by the Department of Consumer Affairs under the Ministry of Consumer Affairs, Food & Public Distribution.
What is Legal Metrology?
Legal Metrology sets out to ensure that whatever you buy (whether it’s rice, oil, fruits, cosmetics, backpacks, electronics, or any other packaged goods or commodities) is in compliance with requirements and guidelines about the quantity, weight, measurements, expiry date, origin, manufacturer, etc., and is also packaged in a manner that these details are captured and made available to you. It’s like having referees in the game of trade, making sure everyone plays fair.
How Does It Work?
- Ensuring Accuracy: You might notice a stamp or mark on the weighing/measuring devices/equipments, this is to show that they’ve been verified and are accurate. In fact, the Legal Metrology department also issues Licenses to manufacturers, dealers and repairer of weighing/measuring devices for dealing with such instruments.
- Packaged Goods: Ever look at a pack of biscuits or a bottle of shampoo and see all those details like MRP, manufacturing date, expiry date, consumer care information as well as the quantity of the package? Legal Metrology rules make it mandatory for companies to give you this information in the manner prescribed under the Legal Metrology Act, 2009 as well as the Legal Metrology (Packaged Commodities) Rules, 2011 so you are aware of the contents of the package and of your mode of communication with the company in case of any complaints.
What a Consumer Should Know?
- Rights as a Consumer: You have the right to get what you pay for. If you feel something is not right, like the weight of a product or the information on the pack, you can file a complaint through the online platform – https://consumerhelpline.gov.in/ , which will be forwarded to the appropriate officer for grievance redressal. One can register complaints by call on 1800-11-4000 or 1915 or through SMS on 8800001915.
- Checking for Stamps: Next time you buy something by weight, look for the stamp or mark on the scale or the measuring device. It means it’s been checked and is okay to use
What a Business Owner (For Consumer Goods) Should Know?
- Product Packaging and Labelling: You must ensure that all products intended for retail sale are accurately weighed or measured and are packaged as per the prescribed standards. This includes providing essential information such as net quantity, MRP (Maximum Retail Price), date of manufacture, expiry date, and consumer care details on the packaging.
- Weighing and Measuring Instruments: Businesses using weighing and measuring instruments (like scales, meters, etc.) must ensure these instruments are verified and stamped by authorized Legal Metrology officers. Regular calibration and maintenance of these instruments are essential to maintain accuracy and compliance.
- Compliance and Audits: Regular audits and inspections are conducted by Legal Metrology authorities to verify compliance with Legal Metrology rules. Non-compliance can lead to penalties, fines, seizure of goods or even legal repercussions, which can impact a company’s reputation and operations.
Challenges and Moving Forward
Offences relating to weights and measures are punished with fine or imprisonment or with both depending on the offence committed. The government is working on making these rules easier to understand and ensuring everyone follows them correctly.
Conclusion
Legal Metrology rules are not just about weights and measures; they are about fairness and trust in every transaction you make. By making sure everything is measured and packaged correctly, these rules protect you as a consumer and ensure that businesses play by the rules. So, next time you shop, remember these rules are on your side to make sure you get what you deserve!
![Significance of Governing Law and Jurisdiction in International Commercial Contracts Significance of Governing Law and Jurisdiction in International Commercial Contracts](https://treelife.in/wp-content/uploads/2024/08/governing-laws-1.webp)
Significance of Governing Law and Jurisdiction in International Commercial Contracts
Blog Content Overview
In today’s interconnected global economy, businesses engage in cross-border transactions and collaborations, necessitating robust legal frameworks to govern contractual relationships and resolve disputes. Governing law and jurisdiction clauses play pivotal roles in international commercial contracts, providing clarity, predictability, and mechanisms for effective dispute resolution. This comprehensive guide delves into the intricacies of governing law and jurisdiction clauses, offering insights from legal principles, industry best practices, and relevant regulatory frameworks.
Understanding Governing Law Clauses
Definition and Purpose: Governing law clauses, commonly included in commercial agreements, specify the legal system and laws that will govern the interpretation, validity, and enforcement of contractual rights and obligations. These clauses serve to provide certainty and predictability to parties involved in international transactions, ensuring uniformity in legal interpretation and dispute resolution. The selection of a governing law in international contracts assumes paramount significance, as it delineates the legal framework governing the formation, performance, and termination of contractual relationships. Failure to specify the governing law can culminate in costly jurisdictional disputes, highlighting the indispensability of clear and unequivocal clause articulation. Through diligent consideration of factors such as suitability, parties’ jurisdictions, and intellectual property protection, stakeholders can strategically align the governing law with their commercial imperatives, thereby bolstering contract enforceability and mitigating legal risks.
Importance of Governing Law
The selection of an appropriate governing law is crucial for several reasons:
- Consistency and Predictability: By designating a governing law, parties ensure consistency and predictability in the interpretation and application of contractual terms, thereby reducing uncertainty and potential conflicts.
- Enforcement of Rights: Understanding the governing law facilitates the effective enforcement of contractual rights and obligations, enabling parties to seek legal remedies in a familiar legal environment.
- Mitigation of Legal Risks: Parties can mitigate legal risks associated with unfamiliar legal systems by selecting a governing law that aligns with their business objectives and risk tolerance.
English law is widely preferred in international commercial contracts due to its:
- Predictability: English law offers a well-established and predictable legal framework, providing parties with clarity and certainty in contractual matters.
- Commercial Expertise: The city of London, renowned as a global financial center, boasts a sophisticated legal infrastructure and expertise in commercial law, making it an attractive jurisdiction for international business transactions.
- Arbitration Facilities: London is home to prestigious arbitration institutions like the London Court of International Arbitration (LCIA), offering efficient and impartial dispute resolution mechanisms for international disputes.
Exploring Jurisdiction Clauses
Definition and Scope: Jurisdiction clauses, often coupled with governing law provisions, determine the forum where disputes arising from the contract will be adjudicated and the procedural rules that will govern the resolution process. These clauses play a crucial role in establishing the legal framework for dispute resolution and clarifying the parties’ rights and obligations. Absence of a jurisdiction clause can precipitate jurisdictional ambiguities, exacerbating legal costs and impeding timely resolution of disputes. Through meticulous consideration of factors such as geographical locations, dispute resolution mechanisms, and governing law recognition, stakeholders can strategically align the jurisdiction clause with their commercial objectives, thereby facilitating efficient and cost-effective dispute resolution.
Key Considerations in Jurisdiction Clause Drafting
- Type of Jurisdiction: Parties must decide whether to opt for exclusive, non-exclusive, or one-sided jurisdiction clauses, each with distinct implications for dispute resolution.
- Geographical Factors: Considerations such as the location of parties, performance of contractual obligations, and the subject matter of the contract influence the selection of an appropriate jurisdiction.
- Enforcement Considerations: Parties should assess the enforceability of judgments and awards in potential jurisdictions, considering factors such as reciprocal enforcement treaties and local legal practices.
- Best Practices for Clause Selection
- Clarity and Precision: Drafting governing law and jurisdiction clauses requires clarity and precision to avoid ambiguity and potential disputes over interpretation.
Conclusion
Navigating governing law and jurisdiction issues in international commercial contracts requires careful consideration of legal principles, industry best practices, and regulatory frameworks. By selecting appropriate governing law and jurisdiction clauses that align with their commercial objectives and risk tolerance, parties can mitigate legal risks, enhance contractual certainty, and foster successful business relationships on a global scale. With a comprehensive understanding of the complexities surrounding these clauses and adherence to best practices, businesses can navigate the challenges of international commerce with confidence and resilience.
![Mapping India’s space-tech industry and regulatory landscape: A launchpad for innovation & growth Mapping India’s space-tech industry and regulatory landscape: A launchpad for innovation & growth](https://treelife.in/wp-content/uploads/2024/08/EC_Fintech_03_Technology_750.jpg)
![Budget 2024 Expectations LIVE Updates: What gaming sector wants from FM Nirmala Sitharaman in Union Budget 2024-25 |||||](https://treelife.in/wp-content/uploads/2024/08/default-image-scaled-1.webp)
![Union Budget 2024: Startup Founders, VC Need Escape From Complex Tax Maze, Brutal Compliances Union Budget 2024: Startup Founders, VC Need Escape From Complex Tax Maze, Brutal Compliances](https://treelife.in/wp-content/uploads/2024/08/union-budget-2024.webp)
![IFSCA Informal Guidance Framework IFSCA Informal Guidance Framework](https://treelife.in/wp-content/uploads/2024/09/IFSCA-GUIDANCE.jpg)
IFSCA Informal Guidance Framework
Blog Content Overview
The IFSCA issued a consultation paper yesterday proposing an “informal guidance” framework, summarized below:
𝐖𝐡𝐨 𝐜𝐚𝐧 𝐫𝐞𝐪𝐮𝐞𝐬𝐭:
- Existing players in IFSCA
- Persons intending to undertake business in IFSC
- Others as may be specified
𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞:
- No-Action Letters: Request IFSCA to indicate whether or not it would take any action if the proposed activity/ business/ transaction is carried out
- Interpretive Letters: Request for IFSCA’s interpretation of specific legal provisions
𝐏𝐫𝐨𝐜𝐞𝐬𝐬:
Application fee: USD 1,000
IFSCA aims to respond to requests within 30 days
The consultation paper invites stakeholders / public to submit feedback by September 10, 2024 via email This is a proactive approach by the IFSCA to foster transparency and provide support to entities operating or looking to operate within the IFSC, ensuring that they have the necessary guidance to comply with the evolving regulatory landscape.
![Exciting Growth in Fund Management at GIFT IFSC |||||](https://treelife.in/wp-content/uploads/2024/08/default-image-scaled-1.webp)
Exciting Growth in Fund Management at GIFT IFSC
We’re thrilled to share the remarkable growth in fund management activities at GIFT-IFSC! Our latest infographic highlights the significant increase in the number of FMEs and funds, investment commitments, and quarterly growth. This impressive surge underscores the expanding scale and acceptance of GIFT-IFSC as a premier fund management hub.
![Regulatory Update from IFSCA (International Financial Services Centres Authority) |||||](https://treelife.in/wp-content/uploads/2024/08/default-image-scaled-1.webp)
Regulatory Update from IFSCA (International Financial Services Centres Authority)
IFSCA has released a Circular prescribing the fees for the newly introduced Book-keeping, Accounting, Taxation, and Financial Crime Compliance Services (BATF) Regulations.
𝐅𝐞𝐞 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞:
– 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐅𝐞𝐞𝐬: $1,000 per activity
– 𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐅𝐞𝐞𝐬: $5,000
𝐀𝐧𝐧𝐮𝐚𝐥 𝐅𝐞𝐞𝐬 𝐟𝐨𝐫 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐏𝐫𝐨𝐯𝐢𝐝𝐞𝐫𝐬:
– Less than 500 employees: $5,000 per activity
– 500 to 1,000 employees: $7,500 per activity
– More than 1,000 employees: $10,000 per activity
𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬 𝐟𝐨𝐫 𝐄𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐀𝐧𝐜𝐢𝐥𝐥𝐚𝐫𝐲 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐏𝐫𝐨𝐯𝐢𝐝𝐞𝐫𝐬 (𝐀𝐒𝐏𝐬):
– Existing ASPs rendering BATF services under the IFSCA ASP Framework are not required to pay the application fee for the same activity under BATF regulations.
– Annual/recurring fees will be adjusted for the fees already paid under the ASP framework.
𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐃𝐚𝐭𝐞:
– Existing ASPs must communicate their willingness to operate under the new BATF regulations for bookkeeping, accountancy, and taxation services by August 2, 2024.
𝘍𝘰𝘳 𝘮𝘰𝘳𝘦 𝘥𝘦𝘵𝘢𝘪𝘭𝘴, 𝘤𝘩𝘦𝘤𝘬 𝘰𝘶𝘵 𝘵𝘩𝘦 𝘊𝘪𝘳𝘤𝘶𝘭𝘢𝘳 𝘩𝘦𝘳𝘦: http://surl.li/yxvqex
![Foreign Liabilities and Assets (FLA), Annual Date Approaches |||||](https://treelife.in/wp-content/uploads/2024/08/default-image-scaled-1.webp)
Foreign Liabilities and Assets (FLA), Annual Date Approaches
Don’t forget, the FLA annual return under FEMA 1999 is due by 𝐉𝐮𝐥𝐲 15. Ensure timely submission to avoid penalties.
𝐖𝐡𝐨 𝐍𝐞𝐞𝐝𝐬 𝐭𝐨 𝐅𝐢𝐥𝐞?
All India-resident companies, LLPs, and entities with FDI or overseas investments.
𝐊𝐞𝐲 𝐃𝐚𝐭𝐞𝐬:
1. Submission Deadline: July 15
2. Revised Return Deadline: September 30
𝐇𝐨𝐰 𝐭𝐨 𝐅𝐢𝐥𝐞:
1. Register on the RBI portal: FLA Registration Link
2. Submit the required verification documents.
3. Log in and complete the form.
![Foreign Liabilities and Assets (FLA), Annual Date Approaches Foreign Liabilities and Assets (FLA), Annual Date Approaches](https://treelife.in/wp-content/uploads/2024/07/1720695271003-791x1024.webp)
![𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 |||||](https://treelife.in/wp-content/uploads/2024/08/default-image-scaled-1.webp)
𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬
The International Financial Services Centres Authority (IFSCA) has recently rolled out the 𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐉𝐮𝐧𝐞 2024. We are thrilled to share a snapshot of the permissible activities and essential considerations to keep in mind before setting up a BATF unit.
𝐏𝐞𝐫𝐦𝐢𝐬𝐬𝐢𝐛𝐥𝐞 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐢𝐞𝐬:
1. Book-keeping Services
2. Accounting Services (excluding audit)
3. Taxation Services
4. Financial Crime Compliance Services
![𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬](https://treelife.in/wp-content/uploads/2024/07/1720009441806-page-001-1583x2048-1-792x1024.jpg)
![𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 𝐁𝐨𝐨𝐤-𝐤𝐞𝐞𝐩𝐢𝐧𝐠, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠, 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐁𝐀𝐓𝐅) 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬](https://treelife.in/wp-content/uploads/2024/07/1720009441806-page-002-1583x2048-1-792x1024.jpg)