CS Professional · Strategic Management and Corporate Finance · Foreign Funding - Instruments, Laws and Procedures
Which statement about the Companies Act, 2013 provisions on foreign bodies corporate is correct as per the official text?
A body corporate incorporated outside India that has been carrying on business in India and has ceased to do so may be wound up as an unregistered company, even if it has been dissolved in its home country. Dissolution abroad does not bar winding up in India.
- AA body corporate incorporated outside India that has ceased to carry on business in India may be wound up as an unregistered company, even if it has been dissolved in its home countryCorrect
- BA foreign company that has ceased business in India cannot be wound up once it has been dissolved under the laws of its country of incorporation
- CA foreign company can be wound up in India only while it is still carrying on business in India
- DA foreign company can be wound up in India only as a registered company under Part I
Explanation
Section 376 provides that a body corporate incorporated outside India which has been carrying on business in India and ceases to do so may be wound up as an unregistered company under that Part, notwithstanding that it has been dissolved or otherwise ceased to exist under the laws of its country of incorporation. The other options contradict this.
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