Amended and updated notes on section 388 of Companies Act 2013. Detail discussion on provisions and rules related to provisions as to expert’s consent and allotment.
Chapter XXII (Section 379–393) of the Companies Act, 2013 (CA 2013) deals with the provisions related to companies incorporated outside India. Section 388 of CA 2013 provides for provisions as to expert’s consent and allotment.
Recently, we have discussed in detail section 387 (Dating of prospectus and particulars to be contained therein) of CA 2013. Today, we learn the provisions of section 388 of the Companies Act 2013.
The provisions of section 388 are effective from 1st April, 2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 388 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXII |
| Chapter Name | Accounts of Companies |
| Section No. | 388 |
| Section Name | Provisions as to expert’s consent and allotment |
| Monthly Updated Edition | Company Law PDF |
Provisions as to expert’s consent and allotment
Section 388 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
Section 388(1): No person shall issue, circulate or distribute in India any prospectus offering for subscription in securities of a company incorporated or to be incorporated outside India, whether the company has or has not been established, or when formed will or will not establish, a place of business in India, —
- (a) if, where the prospectus includes a statement purporting to be made by an expert, he has not given, or has before delivery of the prospectus for registration withdrawn, his written consent to the issue of the prospectus with the statement included in the form and context in which it is included, or there does not appear in the prospectus a statement that he has given and has not withdrawn his consent as aforesaid; or
- (b) if the prospectus does not have the effect, where an application is made in pursuance thereof, of rendering all persons concerned bound by all the provisions of sections 33 and 40, so far as applicable.
Section 388(2): For the purposes of this section, a statement shall be deemed to be included in a prospectus, if it is contained in any report or memorandum appearing on the face thereof or by reference incorporated therein or issued therewith.
MCA Notification No. S.O. 3156(E) dated 5-Aug-2021: The CG exempted the following from the provisions of section 388 by exercising the powers conferred by section 393A:-
- Foreign companies;
- Companies incorporated or to be incorporated outside India irrespective of a place of business in India,
insofar as they relate to the offering for subscription in the securities, requirements related to the prospectus, and all matters incidental thereto in the International Financial Services Centres (IFSC) set up under section 18 of the Special Economic Zones (SEZ) Act, 2005.