Section 391(2) of Companies Act states that "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"
These provisions came into force on 15th December, 2016.
MCA has clarified that subsection(1) and subsection(2) of Section 391 needs to be read harmoniously. Accordingly, it is clarified that provisions of Section 391(2) would apply only in case of foreign company which has issued prospectus or IDRs pursuant to provisions of Chapter XXII of Companies Act, 2013.
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