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CS Executive · Company Law and Practice · Members and Shareholders

Kaveri Foods Pvt Ltd has Indian and overseas shareholders. Its articles authorise a foreign register. The CFO wants to keep a part of the register of members in Singapore. Which statement is correct under the Companies Act, 2013?

A company authorised by its articles may keep, in a country outside India, a foreign register that holds the names and particulars of members, debenture-holders, other security holders or beneficial owners residing outside India. It is not meant for resident members.

  1. AA foreign register may be kept outside India only if the Central Government gives prior approval in each case
  2. BA foreign register can contain details of all members, including Indian residents
  3. CA foreign register is permitted only for debenture-holders, not for members
  4. DIf authorised by its articles, the company may keep a foreign register containing the particulars of members residing outside IndiaCorrect

Explanation

Section 88(4) permits a company, if authorised by its articles, to keep outside India a part of the register called the foreign register. It contains the names and particulars of members, debenture-holders, other security holders or beneficial owners residing outside India. Hence it is not limited to debenture-holders and is not for Indian residents.

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