The amendments dated 11 February 2020 to the Medical Devices Rules, 2017 and the Drugs and Cosmetics Rules, 1945 (Rules) have broadened the scope of medical devices within the purview of the Indian regulatory framework. On the same day, the Government released another notification amending the Rules with an aim to tighten the regulations in relation to marketing of drugs and medical devices (Amendment).
As the government introduces further measures to ensure continuity of business in the midst of the ongoing country wide lock-down pursuant to the COVID – 19 outbreak, we have set out below an overview of the key corporate and commercial regulatory updates for the period between 28 March 2020 and 3 April 2020
The current Covid-19 pandemic and the imposition of various social distancing and other restrictions in India and elsewhere in the world is likely to cause significant disruption to supply chains and potentially make the performance of contracts challenging. In this note, we outline the position under Indian law with regard to whether performance of obligations can be excused on the grounds of frustration through “force majeure” and “material adverse change” (“MAC”) clauses.
Amidst the ongoing pandemic of Covid 19, the Ministry of Corporate Affairs (MCA) has rolled out the Companies Fresh Start Scheme 2020 (Company Scheme) and modifications to the LLP Settlement Scheme, 2020 (LLP Scheme). The Company Scheme and the LLP Scheme seek to provide a fresh start to the companies and limited liability partnerships (LLP) granting them opportunity to sanitize the existing defaults in filing of forms, statements, documents, undertakings, returns etc.
To tackle the various logistical challenges and hardships faced by various corporate entities in ensuring continuity of business in the midst of the various restrictions imposed pursuant to the COVID – 19 outbreak, regulators have announced various relaxations for such entities in relation to compliance with certain legal requirements.
On 25 March 2020, the Board of Governors (in supersession of the Medical Council of India) have framed the Telemedicine Practice Guidelines (Guidelines) which are added as Appendix 5 of the Indian Medical Council (Professional Conduct, Etiquette and Ethics Regulation 2002 (Ethics Regulations). It may be noted that the body of the Ethics Regulations do not seem to have been amended to include a reference to the new Appendix 5.
Striking a bargain for an exit with an unwilling minority shareholder is usually a challenge and does turn out to be a painstakingly arduous task if litigated by a reluctant minority stakeholder. In unlisted companies, the majority shareholder may be driven by a variety of reasons to squeeze-out the minority such as for obtaining greater operational flexibility (and smoother decision-making) or to limit information flow to a minority shareholder.
In the wake of the novel coronavirus (COVID-19), the Government of India and the local authorities have been continuously issuing measures to contain the pandemic such as prohibition on large gatherings, imposition of a ban on travel, closure of certain outlets with large foot falls and requirement to permit work from home for employees. In fact, with the outbreak of coronavirus, the Indian stock market has also been plummeting. The global markets and the business operations are in a state of turmoil.
With the increase in COVID 19 cases in India, the Indian Government announced a complete nationwide lockdown for 21 days starting from 00:00 hours of 25 March 2020. Knowing that this unprecedented lockdown will further disrupt the business continuity of all sectors, the Hon’ble Finance Minister, Ms. Nirmala Sitharaman (FM) on the afternoon of 24 March 2020 announced a slew of fiscal and monetary stimulus measures giving companies a huge sigh of relief in these trying times.
The Ministry of Corporate Affairs (MCA) on 23 March 2020 has issued a clarification that any expenditure towards various activities related to COVID-19 shall be considered an eligible corporate social responsibility (CSR) expenditure (MCA Circular).
