UPDATE
JULY 16 '15
JULY 16 '15
Citizenmat
In other news...
|
A
few concerned citizens of Bengaluru who were aware of the problems faced by
laymen while purchasing a house in the city have drafted their objections and
suggestions to the amended Real Estate Bill 2013. Here’s what they had to
say. Read: Bengaluru citizens
highlight lacunae in new real estate bill.
|
Oct 30
ICL
< previous
CD
Peter Ludlow: The Banality of Systemic Evil
http://www.commondreams.org/view/2013/09/16-5
TMI
Sep 17
Cross refer ICL below>>
BS
ICL
< The current issue of the Economist has two
interesting pieces * (here and here) detailing forms of business that are
acquiring prominence in the US markets and posing a challenge to the dominance
of corporations (or companies) as the main form of business vehicle. Referring
to this phenomenon as “distorporation”, it primarily alludes to the master
limited partnership (MLP).
The details are described as
follows:
The “master
limited partnership” (MLP) combines the limited liability of a corporation, the
tax advantages of a partnership and the governance of a private firm. MLPs do
not pay corporate taxes so long as profits are passed on to investors each year.
They also pay less attention to shareholder rights. A tidal wave of capital is
washing towards these and other, similar “pass-through” structures ... Together,
they represent a mere 9% of the number of listed companies in America, but in
2012 they took in 28% of the equity raised on public markets and paid one-third
of Wall Street fees.>
* The new American capitalism
<< The new popularity of the MLP is part of a larger shift in the way businesses structure themselves that is changing how American capitalism works. The essence is a move towards types of firm which retain very little of their earnings: “pass-through” companies which every year pay out more or less as much as they take in. Many of the standard rules that corporations which retain their earnings have to follow when dealing with shareholders do not apply to such firms. And, crucially, so long as they distribute their earnings such set-ups can largely avoid corporate tax.
C Anyone who cares to, to begin with, have a quick look through the cited two articles, also the insightful comments of the enlightened readers’ posted, cannot fail to instantly decipher that the subject write-up has simply touched the tip of the iceberg. For knowing and fully understanding the true implications of the novel idea of ‘distorporation’ and its hidden/not so-obvious impact on the nation’s economy – in a way, the anti-national effect or consequence of the concept in more than one respect,- recommend a mindful reading of those articles.
This, unmistakably, is another, in addition to LLP, an unwanted offshoot of the original concept of 'corporate'; so much so, can only be expected to have the same, rather more, deficiencies / potentials for anti-social or - national repercussions , as /than LLP.
If so, should not such newer but intrinsically harmful offshoots (ideas) have been nipped in the bud ?
Foot Note:
*Subterranean
capitalist blues
In response to red tape and
high taxes, corporate America is mutating
<<The exemptions that are enabling more firms to
become MLPs, BDCs or REITs depend on lobbying. The quirks of tax rules impede
mutual funds and many others from investing; they tend to be vehicles for very
rich investors. The flow of money out of the companies means that they are
difficult to analyse like normal corporations.
When the flow of money is driven by the advantages of corporate forms as
much as the businesses inside them, the stock market is efficient in only the
narrowest of senses. And when the most advantageous investments are denied to
large swathes of America, the markets are not truly public .>> * The new American capitalism
Rise of the distorporation
A mutation in the way companies are financed and managed will change the distribution of the wealth they create
<< The new popularity of the MLP is part of a larger shift in the way businesses structure themselves that is changing how American capitalism works. The essence is a move towards types of firm which retain very little of their earnings: “pass-through” companies which every year pay out more or less as much as they take in. Many of the standard rules that corporations which retain their earnings have to follow when dealing with shareholders do not apply to such firms. And, crucially, so long as they distribute their earnings such set-ups can largely avoid corporate tax.
Not all
shall be partners
Mindful
of that last point, the American government has in the past restricted the use
of such structures. But these restrictions have eased, and more and more
businesses are now twisting themselves into forms that allow them to qualify as
pass-through. The corporation is becoming the distorporation.”>>
C Anyone who cares to, to begin with, have a quick look through the cited two articles, also the insightful comments of the enlightened readers’ posted, cannot fail to instantly decipher that the subject write-up has simply touched the tip of the iceberg. For knowing and fully understanding the true implications of the novel idea of ‘distorporation’ and its hidden/not so-obvious impact on the nation’s economy – in a way, the anti-national effect or consequence of the concept in more than one respect,- recommend a mindful reading of those articles.
For a quick
synopsis, suggest to have a glimpse of the extracts as put out, simply for
highlighting, in the personal Blog @
http://vswaminathan-swamilook.blogspot.in/2013/09/bl-today.html
Key Note:This, unmistakably, is another, in addition to LLP, an unwanted offshoot of the original concept of 'corporate'; so much so, can only be expected to have the same, rather more, deficiencies / potentials for anti-social or - national repercussions , as /than LLP.
If so, should not such newer but intrinsically harmful offshoots (ideas) have been nipped in the bud ?
Foot Note:
Master Limited Partnerships - Services - Sidley Austin LLP
www.sidley.com/master-limited-partnerships/Master Limited Partnerships (MLPs), also known as publicly traded partnerships or PTPs, are a critical component of the energy infrastructure in the United ...
Latham & Watkins LLP - Master Limited Partnerships - Home
www.lw.com/mlp-portalMASTER LIMITED PARTNERSHIPS (MLPs). Providing access to a library of foundational MLP documents, thought leadership and Latham expertise, this MLP ...
Latham & Watkins LLP - Master Limited Partnerships - Generic ...
www.lw.com/MLP-Portal/101That is fundamentally what master limited partnerships ( MLPs) are all about: cash (or to be more specific, cash flow). In essence, an MLP is a business ...
< previous
CD
Peter Ludlow: The Banality of Systemic Evil
http://www.commondreams.org/view/2013/09/16-5
TMI
Sep 17
Discussion Forum
Cross refer ICL below>>
BS
This issue is significant at a time when forex reserves are down to a three-year low of $274.8 billion.
Now, compare this with what Chidambaram said on August 12: “We expect that the CAD will be contained at $70 billion, while the inflows will increase to a level that will be sufficient to finance the CAD.” Why are the two views different?
The PMEAC expects net capital flows at $61.4 billion, while the Finance Minister hopes to get $75 billion as net dollar flow.
At the end of the financial year, either of these two calculations will prove right, fully or partially.
However, the variance has given an opportunity to rating agencies and economic pundits to once again speculate about India’s CAD situation, which may prevent these agencies from making a favourable statement about the nation’s economy.
Variance in the Finance Minister and PMEAC’s stance doesn’t send the right signal to rating agencies.
<PREVIOUS
BL
Link.
"....Couldn’t the Indian government have walked the talk and brought Ivy League foreign universities here?.." In a commoner"s pragmatic view , guided simply by "common sense", it is unclear why and how the writer"s extra ordinary concern against "outflow" would have found a satisfying answer or significant solution , if the above referred alternative course or the other suggestion of preference to freely allowing FDI, instead of free trade, were to have been followed. In short, the doubt requiring to be enlightened on by erxperts is, -would that, in reality/in the ultimate analysis, at all eventually have made a favorable difference to the "outflow" he grieves about .
"....Couldn’t the Indian government have walked the talk and brought Ivy League foreign universities here?.." In a commoner"s pragmatic view , guided simply by "common sense", it is unclear why and how the writer"s extra ordinary concern against "outflow" would have found a satisfying answer or significant solution , if the above referred alternative course or the other suggestion of preference to freely allowing FDI, instead of free trade, were to have been followed. In short, the doubt requiring to be enlightened on by erxperts is, -would that, in reality/in the ultimate analysis, at all eventually have made a favorable difference to the "outflow" he grieves about .
While inflation and current account deficit seem to be sorting themselves out, the real challenge today is growth. »
Thanks to the ‘licence at every step’ culture, today India is not an infrastructure opportunity. It is an infrastructure liability. »
Don't think twice about exporting wheat. It will pare our current account and fiscal deficits, the latter by reducing storage costs.
ICL
Sporadic Thought:
The 'one-man company',a concept that has been in vogue and widely accepted / prevalent elsewhere before, has, in India, been recently given a legal recognition.So also, what are known as LLPs.
The facets/implications sought to be touched upon herein would, therefore, require a study and deliberation in legal circles,separately/specially wprt those types of legal entities falling within the purview of 'company'.
Add-on
As brought out/implied, no conclusive much less a satisfactory answer could be arrived at to the question as to who has made, and is accountable, for 'undue gains'; is it the person or the firm of which he is a director or officer. Further, anyone venturing to voluntarily or obligated to embark on a detailed study/analysis, ought to bear in mind and extend it also to the inevitable consequences under the other laws in force; primarily, on varied types of 'taxation'. Possibly available Case Law might provide helpful clues/guidance for that purpose.
The 'one-man company',a concept that has been in vogue and widely accepted / prevalent elsewhere before, has, in India, been recently given a legal recognition.So also, what are known as LLPs.
The facets/implications sought to be touched upon herein would, therefore, require a study and deliberation in legal circles,separately/specially wprt those types of legal entities falling within the purview of 'company'.
Add-on
As brought out/implied, no conclusive much less a satisfactory answer could be arrived at to the question as to who has made, and is accountable, for 'undue gains'; is it the person or the firm of which he is a director or officer. Further, anyone venturing to voluntarily or obligated to embark on a detailed study/analysis, ought to bear in mind and extend it also to the inevitable consequences under the other laws in force; primarily, on varied types of 'taxation'. Possibly available Case Law might provide helpful clues/guidance for that purpose.
No comments:
Post a Comment