Source: 1(b)4m,June2021, 07,ICAI Module, RTP,June2020, 1(a)4m,MTP1,June20224 Marks
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Question Scenario

Y incorporated a "One Person Company (OPC)" making his sister Z as nominee. Z is leaving India permanently due to her marriage abroad. Due to this fact, she is withdrawing her consent of nomination in the said OPC. Taking into considerations the provisions of the Companies Act, 2013 answer the questions given below:\n(i) Is it mandatory for Z to withdraw her nomination in the said OPC, if she is leaving India permanently?\n(ii) Can Z continue her nomination in the said OPC, if she maintained the status of Resident of India after her marriage?\nOR\nRohan incorporated a "One Person Company". The memorandum of OPC indicates the name of his brother Vinod as the nominee of OPC. However, Vinod is starting his new business in abroad and needs to leave India permanently. Due to this fact, Vinod is withdrawing his consent of nomination in the said One Person Company. Taking into considerations the provisions of the Companies Act, 2013 answer the questions given below:-\nI. If is it mandatory for Vinod to withdraw his nomination in the said OPC\nII. Can Rohan make his 17 year old son as a nominee in such a case.

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Suggested Answer

i) No, it is not mandatory for Z to withdraw her nomination in the said OPC as she is leaving India permanently as only a natural person who is an Indian citizen whether resident in India or not shall be a nominee in OPC.\nii) Yes, Z can continue her nomination in the said OPC, even if she doesn’t maintain the status of Resident of India after her marriage \nOR\nA) No, it is not mandatory for Vinod to withdraw his nomination in the said OPC even if he is leaving India permanently as only a natural person who is an Indian citizen whether resident in India or otherwiseshall be a nominee in OPC.\nSince Vinod will satisfy this condition, so he does not need to withdraw his nomination.\nB) No, Rohan cannot make his 17 year old son as a nominee of his OPC as no minor shall become member or nominee of the OPC or can hold beneficial interest.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

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