Shares of an Indian Company are say for instance 100. 99 shares are held by a foreign public company. 1 share is held by an individual in India.Is Section 4(7) attracted?
Will your answer be different if the individual in India is holding shares in nominee capacity.
Will number of members and directors be required to be increased to comply with 4(7)
30 July 2009
In above case yes Section 4(7) will be attracted if 99 shares except 1 are held by foreign co.Therefore u have to increase members & directors as per provision of public Co.
But if indian member is holding as nominee of that foreign co than it will be treated as Private co only as 4(7) will be not applicable.
4(7) is ap[plicable only when 100% shares are held by Foreign Body Corporate.
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