XYZ Ltd., a foreign company, has its head office at USA. The Board of Directors (BOD) meetings are held in USA. However, the Board of Directors has delegated major powers to a committee in Kolkata and the members of this

The location where company's Board of Directors (BOD) regularly meets and makes decisions may be the company's Place of Effective Management (POEM) provided the Board: Retain and exercises its authority to govern the company: and Does, in substance, make the key management and commercial decisions necessary for the conduct of the company's business as a whole. In given case the board meetings are held in USA, but the same formalise the decisions taken by the committee at Kolkata. Hence Place of Board meeting held at USA cannot be POEM, as power is delegated to committee which is based at Kolkata. Hence in given case, POEM of XYZ Ltd. will be Kolkata , as discussed above.