Conversion of Public Ltd Company to a Pvt Ltd Company | Procedure

Procedure for conversion of Public Ltd Company to a Pvt Ltd Company

A public company can choose to convert itself into a private company. In such a case, it should pass a special resolution to alter its Articles suitably to incorporate the provisions of a private company. In other words, the Articles
should be modified so as to include provisions relating to:

  1. Limiting the maximum number of members to 50,
  2. Restricting the right to transfer shares and
  3. Prohibiting invitation to the public for subscription of shares or debentures.

Within 3 months of passing the special resolution to alter its articles, the company should seek the permission of the Central Government.

Once the government gives approval, the company must file a copy of the altered articles with the Registrar of Companies. The Registrar shall issue the required certificate of incorporation duly changing its name by adding the word ‘Private’.

Related Post

Under what circumstances a Pvt company be converted to public company Circumstances when a private ltd company becomes a public ltd company The private limited company form of organization is preferred by businessmen be...
Methods of Borrowing by a Company | Long-Term | Short-Term Methods of Borrowing by a Company Almost all trading companies, in the course of their operation, stand in need of money over and above their paid-up...
Members of a Company | Meaning | Rights and Duties Members of a Company In the ordinary commercial usage, the term 'Member' denotes a person who holds shares in a company. The members or the sharehold...
Incorporation or Registration of Company | Stages | Functions of Promoters Incorporation or Registration of a Company After Promotion, the second stage in the formation of a company is the registration or incorporation. The ...
Important stages in the formation of a company Image: 4 Important stages in the formation of a company Important Stages in the formation of a company The whole process of company formation can b...
Differences between Public Limited and Private Limited Company Image: Differences between Public ltd and Pvt ltd companies Differences between Public Limited Company and Private Limited Company The following ar...

Leave a Reply