conversion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 a private co. abc pvt. ltd wants to convert its status from private to public.
it has some share application money pending allotment. i would like to know whether the co. needs to refund that amount or make allotment in respect of that amount.
OR
the share application money pending allotment does not effect the conversion and neet not be altered???

CS Bijoy

CS Bijoy (Expert)
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21 May 2011 Before changing the shareholding pattern Share application money has no affect in conversion but the company must comply with the condition applicable to the public company.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 sir we r not changing the shareholding pattern we already have more than 7 shareholders.

wat conditions needs to be complied with regarding share application money pending allotment for the public company.

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CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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21 May 2011 Unless Share Application Money is Alloted , No Provisions regarding Equity comes Into Picture so u can go Ahead with the Conversion , Maintain Min. 7 shareholders and Ensure that U Clear Share Application Money within 7 Yrs to Escape 205C ..

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