Company Limited by Shares Can Convert to Company Limited by Guarantee Without Share Capital: NCLT

In re Azim Premji Trust Services Private Limited (NCLT Bengaluru) Summary: The NCLT Bengaluru Bench, on 4th September 2024, permitted the conversion of Azim Premji Trust Services Pvt. Ltd. from a company limited by shares to a company limited by guarantee without share capital. The petition, filed under Sections 230-232, 18, and 66 of the Companies Act, 2013, faced opposition from the Registrar of Companies (ROC) and the Regional Director (RD), who cited the absence of specific rules for such conversions. The petitioner argued that while the Act doesn’t provide explicit rules, it also do...