Report No. 101
First, we take the case of companies proper. The requirement of "Indianness" can (in the generality of cases) be brought out by prescribing that all share-holders of the Company should be Indian citizens. However, it can happen that the share-holders themselves are not natural persons, but are artificial persons (or even the Government). Such cases have also to be covered. Accordingly, the amendment, while ensuring (as far as practicable) the Indianness of the entity that holds the share in the company in suitable language, specifically covers this refinement1. We may mention that in the Working Paper, circulated by us, we had put forth the test of 80 per cent. Indian share-holding, but we are now of the view that it should be 100 per cent.
1. Para. 7.4, infra, proposed Article 19, Explanation (a).