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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Legislative Framework of Corporate Governance in India

Nimbus Corp, a body corporate incorporated abroad, carried on business in India and has ceased to do so. It has since been dissolved in its home country. Under the Companies Act, 2013, what is the position regarding its winding up in India?

Nimbus can still be wound up in India as an unregistered company. Section 376 allows this for a foreign body corporate that carried on business in India and ceased to do so, even if it has been dissolved under the law of its home country.

  1. AIt may still be wound up as an unregistered company despite its dissolution abroadCorrect
  2. BIt cannot be wound up in India because it no longer exists
  3. CIt can be wound up only if the home country consents
  4. DIt can be wound up only as a registered company

Explanation

Section 376 says a body corporate incorporated outside India that has carried on business in India and ceased to do so may be wound up as an unregistered company, notwithstanding that it has been dissolved or has ceased to exist under its home law. Dissolution abroad is therefore no bar.

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