Uncover the seamless process of converting a Public Company into a Private Limited Company. From altering documents to RD application, navigate the steps with precision for a compliant transition.
The detailed steps for conversion of public company into private company are as follows;
1. Alteration of Memorandum and Articles of Association of Company.
2. Hold the Board Meeting for such alteration and for conversion’s approval
3. Hold General Meeting of the Company and Pass Special Resolution
4. Application to Regional Director.
APPLICATION TO REGIONAL DIRECTOR
Application shall be filed within 60 days from passing of Special Resolution in form RD-1.
The documents required for application to RD are as follows-
1. Draft copy of MOA and AOA with alterations.
2. Copy of minutes of the General Meeting with details of Votes.
3. Copy of Board Resolution dated not earlier than 30 days authorizing to file application for such conversion.
4. Declaration by a KMP.
- Pursuant to section 2(68) the company limits the number of its members to 200 and also stating that no deposit has been accepted by the company.
- No Non- Compliance of section 73 to 76A, 11, 178, 185, 186 and 188 of the act.
- No resolution is pending to be filed and also that the company was never listed in any of the Regional Stock Exchange.
- If no KMP required to appoint, then declaration from any of the director.
5. The application shall set out following particulars-
- Date of BM at which the proposal for alteration of MOA and AOA was approved.
- Date of GM at which the proposed alteration was approved.
- Reason for Conversion into private company.
- Effect of such conversion on shareholders, creditors, debenture holders, deposit holders and other related parties.
- Details of conversion made within last 5 years and outcome thereof along with copy of order.
6. Attachments with application-
- List of Creditors
- List of debenture holders (latest) i.e. 30 days preceding the date of application by the company along with following details-
1. Name and address of every creditor and Debenture holder
2. Nature and respective amounts due to them in respect of debts, claims or liabilities.
3. At least 21 days before the date of filing the application-
- Advertise in form 25-A
- Individual Notice on each creditor and debenture holder by registered post with acknowledgment due.
Notice to Regional Director and Registrar.
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