From Private to Public and Vice Versa: A Step-by-Step Guide to Company Conversion 🚀
Introduction
The Companies Act, 2013, provides a detailed process for converting a Private Limited Company into a Public Limited Company and vice versa. 🤝 This conversion is typically done to access broader markets, invite public investments, or benefit from the more flexible structure of private companies. 📈
Conversion of a Private Company into a Public Company
📝 Key Provisions Involved:
Section 13: Alteration of Memorandum of Association (MOA)
Section 14: Alteration of Articles of Association (AOA)
👉 Step-by-Step Procedure:
1. Convene a Board Meeting
2. Alteration of Memorandum and Articles of Association
3. Pass a Special Resolution
4. File Forms with ROC (MGT-14)
5. Increase Number of Directors (minimum 3)
6. File Conversion Application (INC-27)
7. Fresh Certificate of Incorporation
8. Post-Conversion Compliance
Conversion of a Public Company into a Private Company
📝 Key Provisions Involved:
Section 13: Alteration of MOA
Section 14: Alteration of AOA
Rule 41 of the Companies (Incorporation) Rules, 2014
👉 Step-by-Step Procedure:
1. Convene a Board Meeting
2. Alteration of Memorandum and Articles of Association
3. Pass a Special Resolution
4. Obtain Approval from NCLT (INC-27)
5. Issue Notice to Authorities
6. Hearing by NCLT
7. File NCLT Order with ROC (INC-28)
8. Issuance of Fresh Certificate of Incorporation
9. Post-Conversion Compliance
Key Differences
🤝 Private to Public: Requires only ROC approval
🚫 Public to Private: Requires approval from both ROC and NCLT
Conclusion
The conversion process requires utmost care to avoid regulatory non-compliance. Companies should seek professional advice for a smooth transition. 📊
Word Count: 500
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Негізгі бет Step-by-Step Approach to Company Conversion | CS PIYUSH JAIN
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