A public company is allowed to convert itself into a private limited company by inserting the restrictions as given in the definition of private company.
Transmission of Conversion Power and Process from NCLT to Regional Director by Rule 41 and The Companies (Incorporation) Fourth Amendment, Rules 2018.
Before coming of the Companies (Incorporation) Amendment, Rules, the National Company Law Tribunal (NCLT) has the power for the Conversion of Public Company into Private Company, But after Companies (Incorporation) Fourth Amendment, Rules 2018, Conversion Procedures of Public Company into Private Company are now associated with Regional Director.
The Companies (Incorporation) Fourth Amendment, Rules 2018: MCA on 18th December, 2018 by amendment inserted Rule 41 under Companies (Incorporation) Rules, 2014 for conversion of public Companies into Private Companies.
By Rule 41 MCA has assigned its power to Regional Director for approval of conversion of public companies into private companies.
The Private Company has less compliance as compared to Public Company to be followed under the Companies Act, 2013. The need for less compliance leads to increase Conversion of Public Company into Private Company. In this article, we will go through the provisions and procedure related to the Conversion of Public Company into Private Company.
By the Conversion of Public Company into Private Company, it gets easier to meet the regulatory provisions and exercise greater control in the Company
1. Photograph of all the Directors
2. PAN Card of all the Directors
3. ID Proof of all the Directors (Driving License/Passport/Voter ID)
4. Electricity Bill or any other utility bill for the address proof of the Registered Office
5. Altered Memorandum of Association.
6. Altered Articles of Association.
7. Certified True copy of Board Resolution may be attached as an optional attachment.
8. Certified True copy of Special Resolution.
9. Notice of EGM along with copy of explanatory statement.
10. Consent letter of shareholders, if any.
11. Certified true Copy (CTC) of Special Resolution passed in General Meeting
12. List of Creditors and debenture holders
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