Examine with reference to the provisions of the Companies Act, 1956

(i) A company incorporated outside India having a share registration office at

· Mumbai.

(ii) Indian citizens incorporated a company in Singapore for the purpose of

“ carrying on business there. [CA. (Final) Nov., 1996]

.9Lns. ‘Foreign Company’ as per Section 591 of the Companies Act, 1956, means a company incorporated outside India but having a place of business in India. Accordingly, to qualify as a ‘foreign company’, a company must have both the following features:

(a) it should be a company incorporated outside India; and

(b) it should have a place of business in India.

As to what amounts to having a place of business in India, Section 602© provides

that the expression ‘place of business’ includes a share transfer or share registration office.

. Define a Government company. Summarise the provisions of the Companies Act, 1956, relating to Government companies. State a few exemptions granted to such companies.

J2Lns .

Meaning of Government Company

Section 617 defines a government company to mean any company in which not less

than 51 % of the paid-up share capital is held by

(i) the Central Government; or

(ii) any State Government or Governments; or (iU) partly by the Central Government and partly by one or more State Govern ments.

A subsidiary of a government company shall also be treated as a government

company.