Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

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

Reply
Follow
Share

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

Upgrade to CAclubindia Pro. Subscribe Now!

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.