Anupama Aggarwal (article) (70 Points)
04 January 2011
Brief facts of the case are as follows:
Mary ltd is a foreign co. which holds 99.99& in Ram ltd an Indian Co.
Your opinion is invited on the following issues:
1)Whether Ram ltd the Indian Co. will be treated as a Foreign Co.
2) If Yes, is there any special requirement for Foreign co. under Companies Act,1956. If there please Elaborate.
Kindly give your opinion with reference to Laws and Case Laws.
Aman Jain
(Company Secretary in Practice)
(165 Points)
Replied 04 January 2011
Dear Anupama,
According to your brief facts Ram Ltd. not at all called foreign company it’s an Indian company which registered under Indian companies act, yes it has foreign investment but according to company law it’s not a foreign company.
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ankit jain
(CS trainee)
(152 Points)
Replied 04 January 2011
Hi,
I Agree with Aman Sir, ram ltd. is an indian company. The only thing is that Mary ltd. has to be submitted a consolidated balance sheet only. Ram ltd. has to comply all the requirement which an indian company has to be.
Any other opinion is highly aprreciated.
Thanks in advance
Anupama Aggarwal
(article)
(70 Points)
Replied 04 January 2011
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Dear Sir Thanks. Maryltd holds 99.99% shares of Ram ltd. As you said that Ram ltd will be considered as Indian co. .Sir plz if you can give me the reference of the section of Companies act in which it is said that An Indian Co. which is the subsidiary of a Foreign co. will remain in the status of Indian Co. Thanks in advance Regards Anupama |
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Aman Jain
(Company Secretary in Practice)
(165 Points)
Replied 04 January 2011
Dear Anupama,
Read sec. 3 for companies registered in India and Section 591 for foreign companies. Then I think you will differentiate between those.
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CAclubindia
