corporate law

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JAGADISH (Querist)
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15 October 2008 Hello Sir,
My ouestion is In a private limited company it is discoverd that there are in fact 54 members on an enquiry it is ascertained that 6 of such members have been employees of the company in the recent past and that they acquired their shares while they were still employees of the company. Is it necessary to convert the company into public limited company?

CA Gaurav Khanna

CA Gaurav Khanna (Expert)
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15 October 2008 Hi You can check Section 3(iii)(b) which says that the employee members will not be cpounted in such limit.