31 October 2009
a private company when fail to comply with restrictive clause becomes a public company by default. now some members of the company(minority members) wanted to convert the company in to public. but majority of members has not accepted. then those minority members (eg.directors) wantedly went against the restrictive clause (eg. taking public deposit, increasing members to more than 50) with out the knowledge other members and gave a coverage that it happened accidently but not intentionally.
then is company converted into public by default. if so, can members take any action against the directors. can the members convert the company in to private if the directors are not accepting
01 November 2009
Directors are only representative of the shareholders. Shareholders can move to the comany law board or court against the directors who are not willing to do so and they can remove them also.
Once they have violated the provisions of a private limited company then automatically it becomes a public company and they have to inform the roc within 30days of hapenning of the event otherwise every officer involved in it will subjected to fine and prosecution from roc.
CAclubindia
