Steps for conversion of Public Company into Private Company

As per Companies Act, 2013, a Public Company can be converted into Private Company. However, unlike, the Companies Act, 1956, the process requires NCLT approval.

Step by step process for conversion of Public Company into Private Company is as under:
  1. Give atleast 7 days notice (or shorter notice as per the provisions of Act) to call Board Meeting of the Company
  2. Hold Board Meeting for approval of conversion of Company into Private Limited subject to approval of Tribunal and approve notice calling General Meeting to obtain shareholders approval for conversion and alteration of MOA & AOA (of Private Limited Company).
  3. Hold General Meeting and obtain shareholders approval by way of Special Resolution for Conversion of the Company and approving alteration in MOA & AOA  of the Company. 
  4. File form MGT-14 within 30 days of passing of Special Resolutions.
  5. Give news Paper Advertisement atleast 14 days before filing of petition with NCLT. 
  6. File a Petition with National Company Law Tribunal (NCLT) in form NCLT-1 within a period of 3 months (from passing of Special Resolution in General Meeting in which Shareholders approval is obtained for conversion)
  7. Send notice of conversion to creditors / debenture holders etc.
  8. NCLT will hear the Company and if satisfied, may approve the same by issuing Order.
  9. File form INC-27 with ROC/MCA within 15 days of the Order. 
  10. On approval of eForm INC 27, ROC/MCA will issue fresh certificate of Incorporation consequent upon conversion of the Company.

Comments

Post a Comment

Popular posts from this blog

What is Corporate Identity Number (CIN)?

Image
Corporate Identity Number ( CIN ) , is a unique 21 digit Alpha-Numeric Code issued by Ministry of Corporate Affairs (MCA) for all the Companies registered under Companies Act, 2013.  Here in the example above, we have taken CIN of Reliance Industries Limited (RIL) from MCA Website  and code is broken into different categories for reader to understand the structure of CIN with ease. 1) Listing Status - First Alphabet First Letter (alphabet) of CIN suggests Listing Status of the Company. Where L  indicates, the Company is listed on recognised stock exchange in India and U indicates it is unlisted Company 2 to 5) Industry Code - next 5 numbers Immediately, after Listing status, CIN has 5 numeric digits which represents Industry Code of the Company. Every Company, registered under Companies Act, 2013, has a Main Object. All those main objects are divided into few broad categories and these 5 digits represents the major activity or the industry of the Company. Click
Read more

Conversion of LLP into Company

The concept of Limited Liability Partnership (LLP), was introduced in India by way of Limited Liability Partnership Act, 2008 and LLP Rules, 2009. As name suggest, in case of LLP, all partners have limited liabilities.  LLP is hybrid of Partnership Firm and Company, it is an alternative corporate form of business organization which gives the benefits of limited liability of a Company and the flexibility of a Partnership. As per LLP Act, read with relevant Rules, any other form of business such as a partnership set up under the provisions of Indian Partnership Act, 1932, a private limited company and an unlisted public limited company can convert itself into LLP pursuant to the provisions of LLP Act, 2008. However, neither of LLP Act nor Companies Act, 1956 provided a provision for conversion of LLP into Private Limited Company. However, with Companies Act, 2013 a provision of conversion of LLP into Private Company was introduced under Section 366 of the Companies Act, 2013. Secti
Read more

Website – Compliance under Companies Act, 2013

What is Website? A Website is a set of related web pages located under a single domain name. Commonly it is also known as virtual address and website of a Company gives company a virtual existence on the internet. In current world, having a website is must for every Business. The Internet has grown at an incredibly fast speed, reaching 3.68 billion users (40% of world’s population) by December 2015. Today, it is almost criminal for a business to not be online. Does Companies Act, 2013 mandates Company to have its own website like Registered Office address? Answer is NO. It is not mandatory for Company to have its own website. The Companies Act, 2013, Rules or notification issued under the Companies Act, 2013 does not mandates the Company to have its own website. However, for Listed Companies, Securities and Exchange Board of India (SEBI), has made it mandatory to maintain a functional and updated website with effect from April 2011 [Initially under Listing Agreement and t
Read more