Section 4 (7) - plz advice

Neeta (Finance) (345 Points)

21 June 2010  

Hello all !

This regards section 4 (7) : Plz tell me does this section has any intention as follows : " A PRIVATE CO. HAVING MAJORITY SHARES FROM FOREIGN COMPANY , IF WANT TO ENJOY THE STATUS OF BEING THE PRIVATE COMPANY, its MEMBERS LIST SHOULD INCLUDE ONLY FOREIGN BODY CORPORATES AND NO INDIVIDUALS ". ( one such opinion has been raised to which i don't agree  n doubt.)

As far my understanding , i don't find any such intention. The intention is simply that - " private company having majority shares from foreign company , that foreign company should be a private if incorporated in India , OTHERWISE  this private company(indian) will become subsidiary of a public company.

Plz advice .,