How would we define the term "principal business" of the Company for the purpose of Companies Act, 1956.
Please provide any back-up reference, if possible.
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Meaning of Principal Business
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Main object of the Company shall be the pricipal business of the Company.
According to context since the matter pertains to Companies Act, it is construed as the main objects of the company which is declared in the MOA while registering the company.
There might be other businesses which would be necessary for carrying on the principal business. For Ex: A Construction Company having as its main business the construction related works can also carry out some other businesses which would help it carry out the principal business of Construction. I know this is confusing but might be little useful to you
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