Meet the Co-chairs - TIAG
Burgis & Bullock
Meet the Co-chairs - TAGLAW
Mitchell Silberberg & Knupp LLP
Barack Ferrazzano Kirschbaum & Nagelberg LLP
Meet the Co-chairs - TAG-SP
Authors: Bruce Roher and Meghan Haley
On October 17, 2018, Canada became the first G7 country to legalize marijuana for recreational use. According to U.S. research firms, Arcview Market Research and BDS Analytics, global consumer spending on cannabis will triple from its current level to US $32 billion by 2022.
As beer, alcohol and tobacco sales volumes slow, companies within these industries have been actively acquiring stakes in, or partnering with, cannabis companies. Cannabis-infused food and drink products will be lawful in Canada no later than October 17, 2019, which is bound to further increase M&A activity.
In October 2017, Constellation Brands, a leading beverage alcohol company (best known for Corona beer and Robert Mondavi wine) acquired a 10% stake in Canopy Growth Corporation for $245 million. In August 2018, Constellation Brands increased its ownership interest in Canopy to 38% for $5 billion. There are clearly benefits to both companies.
The ever-changing environment demands frequent adjustments to be made in the laws of land for efficient and effective management of both business as well as non-business activities. Government has just introduced the Companies (Amendment) Ordinance, 2019 thereby, bringing relevant alterations in Companies Act, 2013 (”Act”). This action has provided an affirmative action that any violation in complying with the set standards will lead to stringent repercussions for both the company and its management.
Financial statements of a company are necessarily required to be filed with Ministry of Corporate Affairs (MCA) annually. The form for filing such financial statements with MCA is AOC – 4. All the companies fall under this category and are compulsorily required to file form AOC – 4.However, few Companies are covered under Extensible Business Reporting Language (XBRL) and are required to upload the financial statements on MCA portal in XBRL format as per the Companies (Filing of documents & Forms in Extensible Business Reporting Language) Rules, 2015. In this case the requirement of signing under hand is not a requisite.
Trading names will cease to be displayed on the Australian Business Register from 1 November 2018. ASIC registration will be required to keep these displayed thereafter.
Trading names or business names in Australia can be one of two types: those registered under State or Territory laws (typically trading names or, in the case of many trusts, the name of the trustee company), or those registered as an Australian Business Name with the Australian Securities and Investment Commission (ASIC) and linked to an Australian Business Number (ABN).
Nobody can claim to be an expert on Brexit, after all, nobody knows exactly what will happen and when it will happen. In the business world this leaves companies with two options: to wait and see what happens and react accordingly, or to anticipate that there will be change, determine what the potential impact could be, understand what can we do now and in the following months to safeguard our businesses and ideally position ourselves to thrive.