Section 393 of the Companies Act, 2013
Section 393 of the Companies Act, 2013 deals with the Application of provisions of Chapter XX to foreign companies. Here's a simplified explanation:
📘 Section 393 – Application of provisions to foreign companies
This section provides that the provisions of Chapter XX (Winding Up) shall apply to foreign companies, subject to modifications as may be prescribed.
🔍 Key Points:
Chapter XX primarily deals with winding up of companies, both voluntary and by tribunal.
Section 393 ensures that relevant provisions also apply to foreign companies (companies incorporated outside India but having a place of business in India).
The Central Government has the power to prescribe rules or make modifications in the application of these winding-up provisions to foreign companies.
📜 Legal Text (Simplified):
The provisions of this Chapter (i.e., relating to winding up) shall apply mutatis mutandis (with necessary changes) to foreign companies, as may be prescribed.
⚖️ Purpose:
To ensure that foreign companies operating in India can also be legally wound up under Indian law.
To give flexibility to the government to adjust the rules as per the unique nature of foreign entities.
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