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No. of directors - urgent

10 May 2007

Dear all

In one of my clients case, a pvt ltd co., there are no directors since 30 sept 2005. 99.99% shares are owned by foreign company. What is the status of such company?

Any remedies...

Thanx & rgds

Varun

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4 Replies

Taher (13 Points)
Replied 10 May 2007

The aforesaid co. is a foreign company due the control and management from foreign country according income tax acxt 1961

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Arabinda Debta (20 Points)
Replied 10 May 2007

Your company's position is on deadlock. And the shareholders than have powered to take steps to appoint a director. In this company you have to seek the assent of your holding foreign company to appoint a director.

As per section 252, the company should have minimum nos. of directors at all time. In case of Pvt. co. 2 and public co. 3 and other company 2.

Thanks
Arbind

Go (22 Points)
Replied 10 May 2007

in such a case there is only one remedy the foreign company can nominate two director.

Go (22 Points)
Replied 10 May 2007

dear taher this is a problem on companies act and not income tax act. and once a company is incorporated in india for the purpose of the companies act the company will be regarded as an indian company and under no circumstances as a foreign company.