A group of Indian citizens hold 60% of the paid up share capital of a foreign company. This group of shareholders claim that since the company was incorporated outside the country, the company is not bound to comply with

Section 379 provides that where not less than 50% of the paid-up share capital, whether equity or preference or partly equity and partly preference of a foreign company is held by one or more citizens of India or by one or more bodies corporate incorporated in India, whether singly or in the aggregate, such company shall comply with such of the provisions of this Act, as may be prescribed by the Central Government with regard to the business carried on by it in India, as if it were a company incorporated in India. Therefore, the company is bound to comply with the provisions of Companies Act, 2013. As such the shareholders' claim is not valid in the given case.