Conversion of Private Company
This query is : Resolved
Rishi Vyas
(Querist)
17 January 2011
On acquition of more than 50% stake in a private company by a public company, the private becomes public.
But do we need to change the basic characterstics like name, share capital, no. of members, no. of directors etc. of that private company?
Regards
Rishi Vyas
But do we need to change the basic characterstics like name, share capital, no. of members, no. of directors etc. of that private company?
Regards
Rishi Vyas
17 January 2011
After acquisition of more than 50% shares in a private company by a public company the private company comes under virtue of sec 3(1)(iv) and wil do buisness as a public company. Immediately the company has to do the following changes...
1. Alter article of association as of a public company.
2. Increase the number of Directors to minimum Three.
3. Number fo members will be increased to Seven.
4. Increase the paid up Capital to Minimum Rs.5lacs.
5. Change its name from ......pvt ltd to ....Ltd. Delete the word private.
6. Obtain new Certificate of Incorporation.
No need to obtain Certificate of Commencement bcoz conversion of pvt to public does not reqire Certificate of Commencement, Whereas it is essential for a new Public ltd to obtain Certifiacte of Commencement to run its business.
1. Alter article of association as of a public company.
2. Increase the number of Directors to minimum Three.
3. Number fo members will be increased to Seven.
4. Increase the paid up Capital to Minimum Rs.5lacs.
5. Change its name from ......pvt ltd to ....Ltd. Delete the word private.
6. Obtain new Certificate of Incorporation.
No need to obtain Certificate of Commencement bcoz conversion of pvt to public does not reqire Certificate of Commencement, Whereas it is essential for a new Public ltd to obtain Certifiacte of Commencement to run its business.
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CA. Praveen Narayan
(Expert)
17 January 2011
Mr.Tahar is exactly right..
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