Winding up of Company
Foreign Company ( 584 )
A foreign company, is a company which is incorporated outside India , and having a place of business in India.
Winding up of such companies is only limited to the extent of it's assets in India. In respect of assets and business carried outside India, Indian courts has no jurisdiction.
- Winding up of a foreign company can only be made through court.
- Even if the company had been dissolved or ceased to exist in the country of it's incorporation, winding up order in this country can be made.
- Even if a foreign company has been wound up according to foreign law, the courts in India still protect the Indian Creditors. The surplus assets, after paying the creditors, should be distributed among the share holders equally in the same proportion, as the assets ---- to the total issued and paid up capital.
- Tendency of a foreign liquidation does not affect the jurisdiction to make winding up order. The Assets can be of any nature and do not take to be in the ownership of the company and can come from any Source [(1944) 2 All.E.R. 556]
- As, for persons claiming to be creditors, their presence, itself is sufficient. It is not required to be shown, that company carried on business operations from any place of business in India.