Corporate and Other LawsQuestion 5391 of 221
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3. Issue of Certificate: As per Rule 8 (2) of the Companies (Registration of Charges) Rules, 2014, in case the Registrar enters a memorandum of satisfaction of charge in full, he shall issue a certificate of registration of satisfaction of charge in Form No. CHG-5. In the instant case, DNC Hydro Limited has to follow the above legal and procedural steps to remove the old charge from ROC records. Alternate Conclusion: As the SPM bank has already issued a no dues certificate, DNC Hydro Limited should file the form CHG-4 within the extended period of limitation i.e. within 30 to 300 days. Accordingly, the Registrar may, on an application by the company allow such intimation of payment or satisfaction to be made within a period of three hundred days of such payment or satisfaction on payment of prescribed fees. The Registrar shall not cause any notice to be sent to SPM Bank in this case as NOC has been issued by it and just register the satisfaction after payment of prescribed fees.

Options

Ahas a place of business in India whether by itself or through an agent, physically or through electronic mode; and
Bconducts any business activity in India in any other manner. Applicability of Act to Foreign Companies: Sections 380 to 386 (both inclusive) and Sections 392 and 393 of the Companies Act, 2013 (the Act) shall apply to all foreign companies. It implies that all companies which falls within the definition of foreign company as per Section 2(42), shall comply with the provisions of this Chapter. Requirement of holding of paid-up share capital: As per Section 379(2) of the Act, where not less than 50% of the paid-up share capital, whether equity or preference or partly equity and partly preference, of a foreign company incorporated outside India is held by: CORPORATE AND OTHER LAWS (i) one or more citizens of India; or (ii) by one or more companies or bodies corporate incorporated in India; or (iii) by one or more citizens of India and one or more companies or bodies corporate incorporated in India, whether singly or in the aggregate, such foreign company shall also comply with the provisions of Chapter XXII and such other prescribed provisions of the Act with regard to the business carried on by it in India as if it were a company incorporated in India. In the instant case, ABC Inc. will also be required to comply with the provisions of Chapter XXII as 50% of the shares of ABC Inc. are held by PQR Private Limited, a company incorporated in India.
CDefinition of ‘Foreign Exchange’ According to Section 2(n) of the Foreign Exchange Management Act, 1999, Foreign Exchange means foreign currency and includes: (i) deposits, credits and balances payable in any foreign currency, (ii) drafts, travelers’ cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency, (iii) drafts, travelers’ cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency. Definition of ‘Foreign Security’ According to Section 2(o) of the Foreign Exchange Management Act, 1999, Foreign Security means any security, in the form of shares, stocks, bonds, debentures or any other instrument denominated or expressed in foreign currency and includes securities expressed in foreign currency, but where redemption or any form of return such as interest or dividends is payable in Indian currency.
D
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Correct Answer

✅ Option A — has a place of business in India whether by itself or through an agent, physically or through electronic mode; and

All Options:

  • Ahas a place of business in India whether by itself or through an agent, physically or through electronic mode; and ✓
  • Bconducts any business activity in India in any other manner. Applicability of Act to Foreign Companies: Sections 380 to 386 (both inclusive) and Sections 392 and 393 of the Companies Act, 2013 (the Act) shall apply to all foreign companies. It implies that all companies which falls within the definition of foreign company as per Section 2(42), shall comply with the provisions of this Chapter. Requirement of holding of paid-up share capital: As per Section 379(2) of the Act, where not less than 50% of the paid-up share capital, whether equity or preference or partly equity and partly preference, of a foreign company incorporated outside India is held by: CORPORATE AND OTHER LAWS (i) one or more citizens of India; or (ii) by one or more companies or bodies corporate incorporated in India; or (iii) by one or more citizens of India and one or more companies or bodies corporate incorporated in India, whether singly or in the aggregate, such foreign company shall also comply with the provisions of Chapter XXII and such other prescribed provisions of the Act with regard to the business carried on by it in India as if it were a company incorporated in India. In the instant case, ABC Inc. will also be required to comply with the provisions of Chapter XXII as 50% of the shares of ABC Inc. are held by PQR Private Limited, a company incorporated in India.
  • CDefinition of ‘Foreign Exchange’ According to Section 2(n) of the Foreign Exchange Management Act, 1999, Foreign Exchange means foreign currency and includes: (i) deposits, credits and balances payable in any foreign currency, (ii) drafts, travelers’ cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency, (iii) drafts, travelers’ cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency. Definition of ‘Foreign Security’ According to Section 2(o) of the Foreign Exchange Management Act, 1999, Foreign Security means any security, in the form of shares, stocks, bonds, debentures or any other instrument denominated or expressed in foreign currency and includes securities expressed in foreign currency, but where redemption or any form of return such as interest or dividends is payable in Indian currency.
  • D

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Detailed Solution & Explanation

This question contains the suggested answers to multiple descriptive questions under its options. Option A contains the definition of a foreign company's place of business and applicability under Section 2(42) and Section 379(2) of the Companies Act, 2013. Since Option A is the designated correct key, we follow the database designation.
Hence, **Option A** is the correct answer.

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