Company Registration in Salem
Conversion of Private Company into Public Company
A private company may be converted into a public company by -
(a) Voluntary action on the part of the company;
(b) By operation of law; and
(c) By default of relevant provisions of the Companies Act, 1956.
Conversion by Voluntary Action
Section 44 of the Companies Act, 1956 lays down that if a private company alters its articles in such a manner that they no longer contain the provisions which, under clause (iii) of Sub-section (1) of Section 3 of the Act, are required to be included in its articles in order to constitute it, a private company, it shall, as on the date of the alteration, cease to be a private company. For such a conversion, the private company is required to take the following procedural steps:
To give due notice and hold a meeting of the Board of directors of the
Company to pass resolutions -
Company;
(ii) For fixing time, date and venue for holding a general meeting of the
Company for passing the required special resolution for conversion
Of the company into a public company;
(iii) For approving notice for the general meeting along with the explanatory
Statement as required under Section 173 (2) of the Companies Act,
Section 26 provides that an unlimited Company Registration in Salem must have Articles of Association prescribing regulations for the Company and Section 27 provides that these Articles shall state the number of members with which the company is to be registered and if the Company has a share capital, the amount of the share capital
The Articles of an unlimited Company shall be in the Form in Table E of Schedule I to the Act.
An Unlimited Company may purchase its own shares or reduce its share capital and repay its members as it pleases since the provision of Section 77 and Section 100 do not apply to them.
As per the provisions of Section 32, an unlimited company may convert itself to a limited company, subject to: the condition that all its debts, liabilities, obligations or contracts incurred before the conversion would not be affected by its change of status.
The procedure for incorporation of such companies is same as in case of companies with limited liability http://www.privatelimitedcompanyregistration.com.
