17 April 2009
There is A Pvt. Ltd. which becomes on 1st April, WOS of B Ltd. And so provisions of section 3(1)(iv)(c) it becomes Public company.
SO the question is whether application to ROC for conversion of the company is mandatory?
if yes within what time?
If ROC convert the company to a LTD company on application from when the covnersion be effective for the purpose of application of other provision of Companies Act, as may otherwise be applcable to Pvt. Companies.
And should be the status of the company during the period of application is pending
Section 3(1)(iv)(c) talks of the situations when a company becomes public company.
But when a private company becomes subsidiary of a public co there is no need of conversion.. Automatically some of the sections which are applicable to public ltd becomes applicable( like 295, 269 read with Sch XIII etc.)
There is no need to increase Authorised capital, paid up capital, no of members, no of Directors.
18 April 2009
Application to ROC for conversion of the company is not mandatory. But you have to ensure that the number of members and directors r changed to 7 & 3. Also paid up capital is increased to 5 Lacs.
No need for conversion.
And even if u opt for conversion than the covnersion will be effective from date of passing the special resolution of shareholders but u can use the name as "... ltd." only after getting the fresh certificate of incorporation after the change.
During the application the company will be public company [refer 3(1)(iv)(c)].
20 April 2009
I do not agree with the above view..
It means all private limited cos which are subsidiaries of Public Limited should increase their paid up cap to 5 lac, their members to 7 and Directrs to 3 which is not the case.
CAclubindia
