Skip to content

CMA Final · Corporate and Economic Laws · Compromises, Arrangements and Amalgamations

For Section 234 of the Companies Act, 2013, the expression 'foreign company' means:

For Section 234, a foreign company is any company or body corporate incorporated outside India, regardless of whether it has a place of business in India. Place of business and shareholder residence do not matter.

  1. AOnly a company having a place of business in India but incorporated abroad
  2. BOnly a company incorporated outside India with no place of business in India
  3. CAny company or body corporate incorporated outside India, whether or not it has a place of business in IndiaCorrect
  4. DOnly a company whose majority shareholders are non-residents

Explanation

The Explanation to Section 234(2) defines a foreign company as any company or body corporate incorporated outside India, whether having a place of business in India or not. The place of business is irrelevant, so the narrower options are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Compromises, Arrangements and Amalgamations shows your real accuracy, how long you take and where you lose marks.

Practise Compromises, Arrangements and AmalgamationsFree diagnostic mock

More Compromises, Arrangements and Amalgamations questions