zankhana Trivedi (Company Secretary) (462 Points)
01 October 2010Can anyone guide me on below given query???
Somehow the members of the Public Limited Company reduced to 2. Is it mandatory to covert such public company into private company after such reduction in the number of members???? Or is there any other way out to continue with Public status???
Please suggest me..
Thanks & Regards
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 01 October 2010
Ya appoint another director and fill the minimum requirement of Directors as per companies act else if such event continue for more than six months then company will be declared defunct company.
zankhana Trivedi
(Company Secretary)
(462 Points)
Replied 01 October 2010
Dear Mr Hardik,
The public company has already 3 Directors. so far as minimum Statutory directors are concerned the company is public Company. The problem is that somehow number of sharesholders of that public co. has reduced to 2. As per statutory requirement. for pub co minimum 7 shareholders are required. so how to continue the status of pub. co when the no of members get reduced from 7 which is statutory requirement..
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 01 October 2010
within 6 months have to raise the no of members to 7 else will be declared defunct and other effect is that both member will be personally liable for the affairs of the company.
CAclubindia
