Company | Judiciary.org

Section 8 Company Limited by Guarantee: An Alternative to Traditional Section 8 for FEMA & FCRA Issues Faced by Foreign Owned and Controlled Entities

Summary: The blog discusses the progressive shift in the implementation of CSR activities by foreign-owned and controlled entities, and how a Section 8 company limited by guarantee can serve as an alternative to the challenges faced by traditional Section 8 companies under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the Foreign Contribution (Regulation) Act, 2010.

Introduction

Corporate social responsibility (“CSR”) has evolved from a voluntary philanthropic activity to a mandatory legal requirement under the Companies Act, … Read the rest

Civil Law

The Impact of the New Company Law on Insurance Corporate Governance

The newly revised Company Law (“New Company Law”) was adopted at the 7th Session of the Standing Committee of the 14th National People’s Congress on December 29, 2023, and has come into effect on July 1, 2024. This article provides a concise analysis of the implications of the New Company Law for corporate governance in insurance companies, offering insights for readers’ reference.

I. Further Emphasizing Corporate Social Responsibility

The concept of corporate governance has long been debated in narrow and … Read the rest

Criminal Law

Pornhub Parent Company to Pay Damages to Trafficked Women Filmed and Posted on Their Site

Aylo Holdings S.A.R.L., the company that operates Pornhub and other adult websites, acknowledged in federal court that it had profited for years from pornographic content that depicted sex trafficking victims, but pleaded not guilty to a charge of engaging in unlawful monetary transactions involving sex trafficking proceeds, Erin Nolan reports for the New York Times. Through an agreement with prosecutors, the company agreed to pay damages to women who said they were forced to appear in pornographic videos that … Read the rest

Civil Law

Company refuses to recall apricot products despite FDA warning of possible cyanide poisoning

The FDA is warning consumers against consuming Apricot Power products because of the presence of the toxic compound amygdalin, which can lead to cyanide poisoning.

Following receipt of a complaint and sample results, the Food and Drug Administration notified Apricot Power of the results and initial concerns. On May 8, the firm declined to recall the products. Upon additional assessment of the findings, the FDA held a follow up call with the firm to share the risks associated with these … Read the rest

Supreme Court

Justices appear sympathetic to insurance company in asbestos bankruptcy

Tuesday’s argument in Truck Insurance Exchange v. Kaiser Gypsum Co. considered a technical question under the Bankruptcy Code, how to decide when an entity is a “party in interest” under the statute, which gives it a right to “be heard on any issue” in a Chapter 11 proceeding. The debtor, a failed asbestos company, claims that it will perform its insurance contracts in full: It will pay all the deductibles it owes, 100 cents on the dollar. Accordingly, it … Read the rest

Civil Law

Salary reimbursement of seconded employees not taxable in the hands of foreign company: Delhi ITAT

The Hon’ble Income Tax Appellate Tribunal (“ITAT”), Delhi has recently held that salary reimbursement of seconded employees paid to the original employer without any profit element is not taxable as fee for technical services.

This case[1] pertains to Ernst and Young LLP, USA (“EY USA”), which is set up in the US. It had sent its employees on secondment (“Seconded Personnel”) to work with various EY member firms in India (“EY India”). … Read the rest