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    cease to be a private company since alters its articles in case of Conversion of Private Company

    Posted By : SHALU / Published on : 05-Jan-2023 09:04 AM / View : 167 / Comment : 1

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    Company will be considered as Public company since where a company being a private company alters its articles in such a manner that they no longer include the restrictions and limitations which are required to be included in the articles of a private company under this Act, the company shall, as from the date of such alteration, cease to be a private company.

    Name Change will be effective from the date of COI or EGM ?
    Read more on : private company case conversion articles since cease alters

    • Yes, according to the provisions of the Companies Act, 2013, a company that was previously a private company will be considered a public company if it alters its articles of association in such a way that they no longer include the restrictions and limitations that are required to be included in the articles of a private company.

      As per Section 2(68) of the Companies Act, 2013, a private company is a company that restricts the right to transfer its shares, limits the number of its members to 200, and prohibits any invitation to the public to subscribe to any securities of the company.

      Therefore, if a private company alters its articles of association to remove any of these restrictions, it will automatically cease to be a private company and will be treated as a public company from the date of such alteration. This means that the company will have to comply with all the provisions applicable to public companies, such as mandatory appointment of independent directors, increased disclosure requirements, and compliance with stricter corporate governance norms.

      22-04-2023 / 10:52:26 AM
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