Foreign Cos, Arms Likely To Be Admitted Non-Resident Chiefs

New Delhi: Subsidiaries of multinational companies (MNCs) and foreign companies looking to establish business in India would be able to have a chief who is not a resident of the country. The Ministry of Corporate Affairs, which is working on a new company law, is likely to relax the existing requirement where the managing director of an MNC subsidiary must be an India resident. The new law is likely to propose that at least one director on the Board should be a resident. The Ministry is hoped to propose a separate chapter for such companies under the new law on the lines of what has been suggested in the Concept Paper on Company Law. A special chapter, which is being dedicated to foreign companies, suggests various regulations to be followed by such entities, including maintenance of accounts, filing of accounts with Registrar of Companies, cost audit, inspection, investigation, registration of charges, and creating debenture trusts. The proposed provisions will apply not only to companies doing business in India, but also those with a share transfer or share registration office in the country.