Before biting a pie of equity ownership, in any Portfolio Company, a Venture Capital (or) a Private Equity Investor, surely reassures, reconfirms and over-negotiates on one simple sticky point, the Anti-Dilution Right (or) Valuation Protection Right.
Current accounting practices do provide for accounting of separate ‘business activities’ or ‘cost centres’ of a Company for the purpose of understanding the working results and profitability of each such ‘business activity’ or ‘cost centre’ BUT for the purpose of calculating dividends to all the Shareholders, the Companies Act, 2013, satisfactorily clarifies that “Profits of an entire Company can only be calculated, subject to adjusting, deducting or setting-off losses of all ‘business activities’ or ‘cost centres’ within such a Company”.
The first step towards a Voluntary Liquidation is a ‘Declaration of Solvency’ to be made by the Board of Directors, stating the Company has not committed any default on any of its debts and that the purpose of Voluntary Liquidation is not to defraud anyone. It needs to be accompanied by documentary evidence.
We talk about the most reckoned term ‘GDPR’ which means the ‘General Data Protection Regulation’, one of the most wide-ranging pieces of legislation passed by the European Union in recent times. It was introduced to standardise data protection laws across the EU and give people, in a growing digital economy, greater control on how their personal information could be used.
‘Convertible Note’ is where an investor loans money to a Start-up as its first round of funding, a prime reason for it to be known as seed funding and rather than getting their money back with interest, the investor opts to receive shares, upon closure of the first round of financing, knows as a “Series A” round, where the debt i.e. the ‘Convertible Note’ auto-typically converts into shares.
The Central Government with a view to facilitate ease of doing business, generate more employment and safeguarding interest of workers and employers, has taken various legislative, administrative and e-governance initiatives relating to Labour Laws in India. One such initiative is simplifying, amalgamating and rationalizing the relevant provisions of the existing Central Labour Laws in merely Four (4) Labour Codes.
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