Status of private limited company if shareholders exceed 50 and importance of records of ROC

SUMMARY OF CASE LAW Supreme Court inter alia on prerequisites for conversion of a private company into a public company – It is not the records of the Registrar of Companies which determines the status of a company but the definition of a “private company” or “public company” as defined in section 3(1)(iii) and 3(1)(iv) of the Companies Act, 1956; having regard to the definition of “private company” in section 3(1)(iii), as soon as the number of its members exceeds 50, it loses its character as a private company. RELEVANT PARAGRAPH 31. In deciding the...