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Tanmay Patnaik

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Principal Associate in the Private Client Practice at the Mumbai office of Cyril Amarchand Mangaldas. Tanmay specialises in family constitutions and settlements, trusts, wills and succession planning. He can be reached at tanmay.patnaik@cyrilshroff.com

 

 

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Blog Image_Why Family Offices need to think beyond money

The Rockefellers are quite possibly the most well-known industrialist family in modern history, whose family name is synonymous with staggering wealth and power. Starting in 1882, the Rockefellers set up an office of trained professionals to handle their wealth. Although never formally called a “family office”, this idea was the seed that gave rise to the concept in modern times as several wealthy families began to follow suit.…
Continue Reading Why Family Offices need to think beyond money: The importance of Family Governance – Part 1

Destroy older will if you make a new one with revisions

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 04th November, 2020 and the online edition of the same can be found here.

I made a will and got it duly registered, declaring my wife as the executor and trustee. After her demise, my daughter and son will be the executors and trustees. Both my children will have absolute discretion to whom they give their shares during their lifetime or after their demise. Is the format alright?

—Sehgal

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Continue Reading Destroy older will if you make a new one with revisions

A testator doesn’t have to submit her will to sub-registrar’s office

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 20th October, 2020 and the online edition of the same can be found here.

My mother in 1987 had made a will which was not registered and was in favour of my elder sister, who is not married. My lawyer says that the unregistered will made in 1987 is valid. Please confirm this. Also, my elder sister, who is now 78, wants to make a will in my favour. My lawyer says that the will has to be registered, as currently unregistered wills are not valid. My lawyer states that my sister has to visit the registry office, and it will not be possible for the official to come home to get the signature. Please advise.

—Name withheld on request

We assume that your sister is a Hindu by faith and, hence, certain rules will apply accordingly. Testamentary succession for Hindus is governed under the Indian Succession Act, 1925. A will is very simple to make—all you need to do is put your signature onto a typed (preferred option) will, which would then need to be signed by two witnesses. It is not mandatory to register a will in India (irrespective of whether you are bequeathing immovable or movable properties).…
Continue Reading A testator doesn’t have to submit her will to sub-registrar’s office

Land inherited from biological or adopted mother is not considered ancestral property
As a daughter your right to claim a share in your father’s self-acquired property would arise if your father were to die intestate. Image Source: Livemint.com

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 7th October, 2020 and the online edition of the same can be found here.

We are two sisters and our father inherited a residential property from his mother through a will. He willed the whole property to my elder sister under pressure. Can my father give the property to one of the two legal heirs, leaving nothing for the other?

—SB…
Continue Reading Land inherited from biological or adopted mother is not considered ancestral property

The Opportunity of a Lifetime for HNIs—Saving the Indian NGO Sector

This post is written by the authors in collaboration with our Guest Authors –  Ashish Karamchandani, Senior Advisor at FSG and Abhishek Khanna, Senior Consultant at FSG

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The year 2020 will be etched in our memories for a long time. COVID-19 has blindsided most of us. The non-discriminating virus has not spared any country, religion, or occupation, and has impacted the lives of every individual in the world.

Yet some have suffered more than others. In India, the impact has been greater on the marginalised groups in cities, such as the migrant workers and the low-income households. Nearly four crore individuals are reported to be without work or home, and their plight is unlikely to end any time soon. Although, the pandemic is status neutral, and can affect anybody belonging to any strata of the society, containment zones have shifted from the more affluent parts of cities to the slums and other congested areas.  A third group comprising the aging citizens in cities, bereft of any support system, also remain vulnerable.…
Continue Reading The Opportunity of a Lifetime for HNIs—Saving the Indian NGO Sector

Covid -19 and succession planning

 Lawyers are generally very conservative – so it may sound a bit alarmist to hear us say “the world is ending!” At the time of writing, India is coming to grips with the terrifying ‘Severe Acute Respiratory Syndrome Coronavirus-2 (“COVID-19”)’ virus. There is something primal and scary about an airborne threat that can kill you – from something as simple as coming close to an infected person, or touching a door handle, etc. It makes us think about the fragility of life, and the need to protect our loved ones. Some people may believe the steps being taken at present are an overreaction – but are they?

As per the WHO, COVID-19 appears to target the elderly and individuals having underlying illnesses. The WHO mission to China found that 78% of the cases reported as of February 20, 2020 were in individuals between ages 30 and 69. In a matter of barely three months, COVID-19 has infected over 185,000 individuals, resulting in nearly 7,200 deaths, covering 157 countries and territories around the world. The Diamond Princess cruise ship harbored in Yokohama, Japan— was among the lone case involving an international vessel. In India, at the time of writing, 110+ individuals tested positive for the virus, with three fatalities. The virus knows no boundaries, gender or net worth, targeting poor and rich alike. Pandemics are an equalizer in society.

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Continue Reading Estate & Succession Planning during the Coronavirus Pandemic

In recent years, the issue of corporate governance in India has been a hot topic of discussion. As India Inc. has grown by leaps and bounds, corporate India’s attention has evolved from simple ‘management’ to ‘governance’, and now ‘effective governance’. Given the unique challenges that India Inc. faces due to the predominance of family run businesses, there is a pressing need to move from the ‘Raja’ and ‘Praja’ model of governance (wherein the self-interests of the promoter family precedes the interests of other stakeholders) to the ‘Custodian’ model of governance (which is designed to serve the interests of all stakeholders). While some promoters have consciously worked hard to establish a “Ram Rajya” (a democratic-righteous rule), many are still reluctant to yield power and fear that it may lead to an abdication of their throne.

Kotak Committee

In June 2017, Securities and Exchange Board of India (SEBI), constituted a high powered committee under the chairmanship of Mr. Uday Kotak (Kotak Committee) with the aim of improving governance standards of Indian listed companies which came out with detailed recommendations (Kotak Report)[1]. The legal experts on the Kotak Committee included our Firm’s Managing Partner, Mr. Cyril Shroff.

On March 28th, 2018, SEBI’s Board decided on these recommendations whereby (i) 40 out of 80 were accepted without any modifications; (ii) 15 were accepted with modifications; and (iii) 18 were rejected.

Kotak Committee – Key recommendations accepted by SEBI

The Kotak Committee suggested numerous amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which will consequently impact all listed entities. In this article, we dissect some of the critical proposals and their impact on Indian Promoters. For a full list of recommendations accepted by SEBI, please refer to the press release[2].

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Continue Reading India’s Tough New Corporate Governance Regime – Impact on Promoters