Amended and updated notes on section 391 of Companies Act 2013. Detail discussion on provisions and rules related to application of sections 34 to 36 and Chapter XX.
Chapter XXII (Section 379–393) of the Companies Act, 2013 (CA 2013) deals with the provisions related to companies incorporated outside India. Section 391 of CA 2013 provides for application of sections 34 to 36 and Chapter XX.
Recently, we have discussed in detail section 390 (Offer of Indian Depository Receipts) of CA 2013. Today, we learn the provisions of section 391 of the Companies Act 2013.
The provisions of section 391 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 391 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. | 391 |
| Section Name | Application of sections 34 to 36 and Chapter XX |
| Monthly Updated Edition | Company Law PDF |
Application of sections 34 to 36 and Chapter XX
Sub-section (1) of section 391 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014 and sub-section (2) of section 391 shall come into force on 15th December, 2016 vide Notification No. S.O. 3677(E) dated 07.12.2016.
Section 391(1): The provisions of sections 34 to 36 (both inclusive) shall apply to—
- (i) the issue of a prospectus by a company incorporated outside India under section 389 as they apply to prospectus issued by an Indian company;
- (ii) the issue of Indian Depository Receipts by a foreign company.
Section 391(2): Subject to the provisions of section 376, 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 in case such foreign company has raised monies through offer or issue of securities under this Chapter which have not been repaid or redeemed.
Did you know? The foreign companies and companies incorporated or to be incorporated outside India irrespective of a place of business in India, has been exempted from the provisions of section 391, in respect of 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. – MCA Notification S.O. 3156(E) dated 5-Aug-2021.