Companies Act Section 391 — Application of sections 34 to 36 and Chapter XX

CHAPTER XXII COMPANIES INCORPORATED OUTSIDE INDIA

Commercial / Corporate

Summary

Sub-section (1) states that the rules in sections 34 to 36 of this Act will apply to two situations. First, they apply to a prospectus issued by a company incorporated outside India under section 389, in the same way they apply to a prospectus issued by an Indian company. Second, they apply to the issue of Indian Depository Receipts by a foreign company.

Sub-section (2) says that, subject to the provisions of section 376, the rules in Chapter XX of this Act will apply, with necessary changes, to the closure of a foreign company's place of business in India. This application is as if the foreign company were a company incorporated in India, but only in a case where the foreign company has raised money through an offer or issue of securities under this Chapter, and that money has not been repaid or redeemed.

Official Text

(1) The provisions of sections 34 to 36 (both inclusive) shall apply to—

(i) the issue of a prospectus by a company incorporated outside India under section 389 as they apply to prospectus issued by an Indian company;

(ii) the issue of Indian Depository Receipts by a foreign company. 1[

(2) Subject to the provisions of section 376, the provisions of Chapter XX shall apply mutatis mutandis for closure of the place of business of a foreign company in India as if it were a company incorporated in India in case such foreign company has raised monies through offer or issue of securities under this Chapter which have not been repaid or redeemed.]