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Corporate Amicus: January 2013

Article in this January, 2013 issue of Corporate Amicus analyses challenges and way forward in respect of restrictive covenants in employment contracts while observing that new ideas are still in the process of getting assimilated in the India legal system. Ministry of Corporate Affairs has asked cost auditors and companies to file their cost audit and compliance reports, in the XBRL mode, latest by 31-1-2013. Reserve Bank of India has further relaxed the External Commercial Borrowing (ECB) Policy in case of non-banking finance companies categorized as infrastructure finance companies. News Nuggets in this issue cover Companies Bill and the Banking Laws (Amendment) Bill as recently passed by the Lok Sabha. Under Ratio decidendi, this issue covers Competition Commission’s recent order holding that mere price increase is not a competition issue and Delhi High Court has held that the Company court cannot order winding up of a company without granting an opportunity to the company to show to the said court why an advertisement should not automatically follow admission of the petition.

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