Conversion of pvt ltd company into public company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2015 Dear all expert
i am running pvt. ltd comapny for the last seven year have 17 crore authories capital. please sugget me can i convert my comapny into public company. also clarify me what will be the share issuing procedure and who will keep the it's record & how the divident is to be given to shareholders......

please let me know full details how the publce company has to funcning

thank in advace..

CA CHIRAG DOSHI

CA CHIRAG DOSHI (Expert)
Follow

12 May 2015 REGULATORY REQUIREMENTS:
Legal Provisions related to Conversion of Private Company into Public Company are given in Section 18 and 14 of the Companies Act, 2013 read with Rule 33 of Companies (Incorporation) Rules, 2014.
Bare Act Language of Section 18 and 14 of the Companies Act, 2013 and Rule 33 of Companies (Incorporation) Rules, 2014 given at the end of Article.
As per Section 13 and Section 14 of the Companies Act 2013 read with Rule 33 of Companies (Incorporation) Rules, 2014.
PROCEDURE/STEPS FOR CONVERSION OF PRIVATE COMPANY INTO PUBLIC COMPANY

S. No. STEPS ACTION
A. BOARD MEETING ISSUE NOTICE in accordance with the provisions of section 173(3) of the Companies Act, 2013, for convening a meeting of the Board of Directors. Main agenda for this Board meeting would be:
(Process of Appointment of Director given in my separate Article)

(Process of increase in authorized capital given in my separate Article)
AGENDA :Pass Board resolution for increase in No. of Directors. (Minimum 3 Directors)
Pass a board resolution to get in principal approval of Directors for increase in authorized capital of the Company.
Fix date, time and place for holding Extraordinary General meeting (EGM) to get approval of shareholders, by way of Special/ Ordinary Resolution, for increase in authorized capital of the Company.
To approve notice of EGM along with Agenda and Explanatory Statement to be annexed to the notice of General Meeting as per section 102(1) of the Companies Act, 2013;
To authorize the Director or Company Secretary to issue Notice of the Extra-ordinary General meeting (EGM) as approved by the board.
B. NOTICE OF GENERAL MEETING: Provisions of the Section 101 of the Companies Act 2013 provides for issue of notice of EGM in writing to below mentions at least 21 days before the actual date of the EGM :
Ø All the Directors.
Ø Members
Ø Auditors of Company

C. CONVENE A GENERAL MEETING: · Check the Quorum.· Check whether auditor is present, if not. Then Leave of absence is Granted or Not. (As per Section- 146).
· Pass Special Resolution.[Section-114(2)] to get shareholders’ approval for increase in authorized capital of Company.

· Approval of Alteration in MOA.
D. ROC FORM FILING For alteration in Article of Association for conversion of private company in public Company under section 14, few E-forms will be filed with concerned Registrar of Companies at different stages as per the details given below
E- Form MGT.14 As per Section 117(3)Copy of this special resolution is required to be filed with concerned ROC through filing of form MGT.14 within 30 days of passing special resolution in the EGM
ATTACHMENT:i. Notice of EGM along with copy of explanatory statement under section 102;
ii. Certified True copy of Special Resolution;
iii. Altered memorandum of association;
iv. Altered Articles of association
v. Certified True copy of Board Resolution may be attached as an optional attachment.
It is relevant to note that First you have to file form MGT 14 as SRN No. of form MGT 14 will be used in form INC 27
E- Form INC.27 Accordingly an Application for conversion of a private company into a public company is required to be filed in e-Form INC 27 to the ROC concerned, with all the necessary annexure and with prescribed fee.
ATTACHMENT:i. It is mandatory to attach Minutes of the member’s meeting where approval was given for conversion and altered articles of association.
ii. No need to attach copy of order of Competent Authority.
iii. Altered Articles of Association.
iv. Other information if any can be provided as an optional attachment
Note: Some ROC require following further documents in INC-27.
i. Affidavit from Director or MD or WTD stating following:
ü Letter of no objection have been obtained from all creditors /Debentures holders.
ü No demand from Sales Tax or Income Tax or Excise is pending
ii. Certified list of Creditors of the Company as on date of EGM.
iii. Certified list of Members of the Company as on date of EGM.
iv. Proof of filing of statutory report with ROC.
v. List of cases pending before any court of Law where company is a party.
If ROC satisfied then ROC shall close the former registration and issue fresh certificate of incorporation, after registering the documents submitted for change in class of company.

Thanks & reagrds

CA Chirag Doshi & Co.
9833027231