Corporate Law: Private Equity Law of India
Under corporate law, corporations of all sizes have separate legal personality, with limited liability or unlimited liability for its shareholders. Shareholders control the company through a board of directors which, in turn, typically delegates control of the corporation's day-to-day operations to a full-time executive.
Corporate Laws in India
In India, laws governing companies are mainly to be found in the Companies Act, 1956. Voluminous and containing 658 Sections, 15 Schedules and several Rules, the Companies Act, 1956 is modeled on the English Companies Act.
Any entrepreneur desirous of doing business in India has an option to form a Company, Private or Public with limited liability under the provisions of the Companies Act.
A Private Limited Company must have a minimum number of two and a maximum number of 50 shareholders whilst a Public Company needs a minimum number of seven shareholders with no upper limit. Before commencing any business, a Public Company is obliged to obtain a certificate from the Registrar of Companies, whilst a Private Company can commence its business and exercise borrowing powers immediately upon its incorporation. The shares of a private limited company are not freely transferable and it cannot offer its shares or debentures to public for subscription. However, there are major exemptions and privileges enjoyed by a Private Limited Company under the Companies Act, 1956.
Corporate Law firm of India
The Corporate Law Team of Lakshmikumaran&Sridharan advises multinational and Indian clients in various sectors like power, oil and gas, telecom, infrastructure, real estate, automobiles, pharmaceuticals, chemicals, electronics, insurance and information technology.
Private Equity Laws of India
Private Equity Law practice in India is unique due to the dynamics of Indian businesses. The Indian economy is driven by a large number of family owned and managed companies and a relatively high number of listed companies, all of which face lack of liquidity in the market despite having large available capital. This presents a unique opportunity for private equity in India for making financial and operational contribution. The nature of Indian companies and local laws and procedures entail a thorough and systematic strategy for investment and exit from companies. Several choices of investment are available to suit the individual requirements. These choices range from outright buyouts with the requisite restructuring and reorganization of the company, structured investments, support to established businesses for further growth in the form of capital funds and roll ups to ensure economies of scale are achieved. Each of these choices requires special expertise and experience in the Indian scenario.
Private Equity Law firm in India
The Private Equity Law team in Lakshmikumaran&Sridharan consists of experienced practitioners who have handled several private equity investments in India. Attorneys in Lakshmikumaran&Sridharan have set up fund and advised on the mode of investment as also provided support in the form of ongoing portfolio assistance and restructuring in this area. The team understands that the success of the transactions also depends heavily upon the quality of the due diligence and subsequent compliance with the law and its teams are highly trained to manage these activities.
Corporate Laws in India
In India, laws governing companies are mainly to be found in the Companies Act, 1956. Voluminous and containing 658 Sections, 15 Schedules and several Rules, the Companies Act, 1956 is modeled on the English Companies Act.
Any entrepreneur desirous of doing business in India has an option to form a Company, Private or Public with limited liability under the provisions of the Companies Act.
A Private Limited Company must have a minimum number of two and a maximum number of 50 shareholders whilst a Public Company needs a minimum number of seven shareholders with no upper limit. Before commencing any business, a Public Company is obliged to obtain a certificate from the Registrar of Companies, whilst a Private Company can commence its business and exercise borrowing powers immediately upon its incorporation. The shares of a private limited company are not freely transferable and it cannot offer its shares or debentures to public for subscription. However, there are major exemptions and privileges enjoyed by a Private Limited Company under the Companies Act, 1956.
Corporate Law firm of India
The Corporate Law Team of Lakshmikumaran&Sridharan advises multinational and Indian clients in various sectors like power, oil and gas, telecom, infrastructure, real estate, automobiles, pharmaceuticals, chemicals, electronics, insurance and information technology.
Private Equity Laws of India
Private Equity Law practice in India is unique due to the dynamics of Indian businesses. The Indian economy is driven by a large number of family owned and managed companies and a relatively high number of listed companies, all of which face lack of liquidity in the market despite having large available capital. This presents a unique opportunity for private equity in India for making financial and operational contribution. The nature of Indian companies and local laws and procedures entail a thorough and systematic strategy for investment and exit from companies. Several choices of investment are available to suit the individual requirements. These choices range from outright buyouts with the requisite restructuring and reorganization of the company, structured investments, support to established businesses for further growth in the form of capital funds and roll ups to ensure economies of scale are achieved. Each of these choices requires special expertise and experience in the Indian scenario.
Private Equity Law firm in India
The Private Equity Law team in Lakshmikumaran&Sridharan consists of experienced practitioners who have handled several private equity investments in India. Attorneys in Lakshmikumaran&Sridharan have set up fund and advised on the mode of investment as also provided support in the form of ongoing portfolio assistance and restructuring in this area. The team understands that the success of the transactions also depends heavily upon the quality of the due diligence and subsequent compliance with the law and its teams are highly trained to manage these activities.
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