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CS Professional · Corporate Restructuring, Valuation and Insolvency · Types of Corporate Restructuring

Under Section 234(2), a foreign company wishes to merge into an Indian company registered under the Companies Act, 2013. Which statement correctly describes the term 'foreign company' for this purpose?

A foreign company means any company or body corporate incorporated outside India, whether it has a place of business in India or not. The Explanation to Section 234(2) sets this definition, and it does not depend on RBI registration or shareholder residency.

  1. AOnly a company that has a place of business in India
  2. BOnly a company registered with the RBI
  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 foreign company as any company or body corporate incorporated outside India, whether having a place of business in India or not. Options A, B and D add conditions of place of business, RBI registration or shareholder residency, none of which appear in the definition.

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