Section 377 of the Companies Act, 2013
Section 377 of the Companies Act, 2013 pertains to "Provisions as to Expert's Report in Prospectus" for foreign companies.
📘 Section 377 – Provisions as to Expert’s Consent and Allotment of Shares by Foreign Companies
Applicability:
This section applies to foreign companies offering securities in India.
🔍 Key Provisions:
Expert’s Consent:
If a prospectus issued by a foreign company includes a statement by an expert, the written consent of the expert must be obtained before issuing the prospectus.
The expert must state that they have not withdrawn their consent before the delivery of the prospectus for registration.
Disclosure Requirement:
The prospectus must state that the expert has given and not withdrawn consent to the issue.
Expert’s Role:
An expert includes an engineer, valuer, accountant, or any other professional whose opinion or report is included in the prospectus.
⚖️ Objective:
To protect investors and ensure transparency and credibility in the information provided by foreign companies offering securities in India.
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