Introduction: The conversion of a private limited company to a public limited company involves specific regulatory provisions outlined in the Companies Act, 2013. In this article, we explore the process and benefits of this conversion, empowering companies to make informed decisions about their corporate structure and operations.
There are various reasons due to which the name of the company may be changed by the management of the company. i.e. if it found after the incorporation of the company in the opinion of central govt the name of the company is similar or identical to the name of the existing company or if any person files the application for change of name with the central government. Or company decides to change the name voluntary after complying the specified procedure.
In today article I will brief the process of the conversion of the private limited company to public limited Company.
Regulatory Provisions for conversion of Private Limited Company to Public Limited Company:
That the process of the conversion of private limited company to Public limited company is governed by the provisions of the section 18 of Companies Act, 2013 and Rule 33 of Companies (Incorporation) Rules, 2014.
Benefits of Conversion of Company from the Private to the Public Company.
1. Listing of Shares: After the conversion of Company, the public company can raise fund from the stock market.
2. Shares can be transferred: By going for process of conversion of private limited company the shares can be easily transferred from one shareholder to another shareholder.
3. Increase the Reputation: Conversion of private limited company into the public limited company would increase the reputation of the Company.
4. Acceptance of Deposits: After conversion of company the company can raise the deposits from the Public.
DETAILED PROCESS OF CONVERSION OF COMPANY
| S.NO | PARTICULARS | REMARKS |
| 1. | Meeting of board of directors of the company will be placed at the meeting and pass the resolution for conversion and alteration of MoA & AoA and Approve the notice of calling the EGM for passing the Special Resolution and Authorise any of the Director for the issuing the notice of the EGM. | |
| 2. | In Extra-ordinary General meeting the Special resolution will be passed for conversion of company and for alteration of MoA & AoA. | |
| 3. | E-Form MGT-14 will be filed with in 30 days from the date of passing of special resolution along with:
(a) Special Resolution (b) Notice & Explanatory Statement. (c) Alerted MOA & AOA. |
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| 4. | E-form INC-27 will be filed with in 15 days from the date of passing of special resolution with:
(a) Special Resolution (b) Minutes of Members meeting (c) Alerted article of association. |
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| 5. | Post Conversion Compliances like- Appointment of directors, and increase the no. of Members in the Company. |
Conclusion: Converting a private limited company to a public limited company offers various benefits, including access to capital markets and enhanced reputation. Understanding the detailed process outlined by regulatory provisions enables companies to navigate this transition effectively. For further clarification or assistance, readers are encouraged to contact the author, a seasoned Company Secretary, for expert guidance.
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Feel free to contact the author for further clarification at 8279255794 or via mail at [email protected]@gmail.com. The author is the founder of Piyush Goyal & ASSOCIATES (Practicing Company Secretaries Firm) based in Delhi, Mumbai & Jaipur.
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