Legal Updates for July 2024 India Recalibrates Policy on Dispute Resolution Mechanisms in Public Procurement Contracts
Over the past decades, India has seen arbitration grow in prominence as a preferred dispute resolution mechanism. Arbitration offers several advantages over litigation such as confidentiality, the ability to appoint decision-makers with the relevant technical expertise, and finality of awards. In a speech to the UK Supreme Court on 6 June 2024, the Chief Justice of India, DY Chandrachud, noted that arbitration had become the "preferred method of seeking commercial justice".
Where the Government of India ("Government") is party to a dispute, however, these advantages have not always materialised. In light of the Government's accountability to Parliament, the confidentiality of an arbitration conversely transforms into a drawback. Tribunals may depart from judicial practice, leading to similarly situated disputants being treated differently merely because one disputant has chosen to arbitrate. Further, government decision-makers often elect to challenge adverse awards due to a perception that it is improper not to exhaust all judicial avenues, negating the intended finality of awards.
On 3 June 2024, the Government published the Guidelines for Arbitration and Mediation in Contracts of Domestic Public Procurement – reg ("Guidelines"). The Guidelines are a significant recalibration of the Government's approach to arbitration in the context of public procurement contracts, placing new restrictions on the use of arbitration and promoting mediation as an alternative dispute resolution mechanism.
In this article, we provide an overview of the Guidelines and comment on the impact for parties seeking to enter public procurement contracts.
ACRA Enhances Corporate Compliance Regime to Combat Money Laundering
As part of efforts to strengthen Singapore's anti-money laundering regime, the Accounting and Corporate Regulatory Authority ("ACRA") has introduced a number of legislative amendments to the corporate compliance framework, which were passed in Parliament on 2 July 2024: (i) the Corporate Service Providers Act; (ii) the Companies and Limited Liability Partnerships (Miscellaneous Amendments) Act; and (iii) the ACRA (Registry and Regulatory Enhancements) Act.
Among other changes, the Acts introduce new obligations and restrictions on corporate entities in relation to maintenance of registers, nominee directors and shareholders, and personal data filed with ACRA. The Acts have yet to come into force.
This Update highlights the key features of the Acts and the compliance measures therein, as well as the indicated timelines for implementation.
SGX RegCo Issues Guidance Note and New Checklist for Change of Auditors
On 19 June 2024, the Singapore Exchange Regulation issued the "Guidance Note on Change of Auditors" setting out its approach towards assessing an application by an issuer listed on SGX-ST ("issuer") for a change of auditors ("Application"). This Update highlights two key points covered under the Guidance Note, namely:
- the requirement that issuers must submit a Change of Auditors Checklist together with the Application; and
- the minimum information that issuers must disclose in its circular issued to shareholders for them to consider when voting on a change of auditors..
|
