Prashant incorporated a "One Person Company" making his sister Priya as the nominee. Priya is an Indian citizen. She was born and brought up in…
CA Intermediate · Corporate and Other Laws · RTP · September 2024
Prashant incorporated a "One Person Company" making his sister Priya as the nominee. Priya is an Indian citizen. She was born and brought up in Kanpur. However, now Priya and her husband are leaving India permanently to stay with their son who is settled abroad for the last 15 years. Due to this fact, she is withdrawing her consent of nomination in the said One Person Company. Taking into considerations the provisions of the Companies Act, 2013 answer the questions given below. (i) If Priya is leaving India permanently, is it mandatory for her to withdraw her nomination in the said One Person Company?
Suggested Answer and Working Notes:
According to Rule 3 of the Companies (Incorporation) Rules, 2014, only a natural person who is an Indian citizen whether resident in India or otherwise shall be eligible to incorporate a One Person Company. In the given question Priya is an Indian citizen and a resident of India. Thus, if Priya is able to maintain her Indian citizenship status in India after moving abroad then she can remain as nominee in OPC of Prashant irrespective of her residential status.
Topics: Incorporation of Company and Matters Incidental Thereto
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