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Meaning of Principal Business

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HR Legal and Management Consultant
172 Points Joined August 2008

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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On 11 July 2009 at 12:45 Report
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Company Secretary and AVP Legal
171 Points Joined June 2009

 Main object of the Company shall be the pricipal business of the Company. 

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On 11 July 2009 at 12:57
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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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On 12 July 2009 at 14:24

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