Private Limited Company into Limited Company
Both Private and public limited companies have separate legal entity. A private Limited company can be converted into public limited company. Public Limited Companies as compared to other business forms enjoys better recognition in the market and bestows confidence in the stakeholders.
Conversion of status of company from private to public would become effective form the date of receipt of the approval of the Registrar through the change of name would become effective on the issue of fresh Certificate of Incorporation.
• Members of the company shall approve the conversion of Company into public company By Special resolution
• Name clause of the memorandum needs to be amended to exclude the word private.
• If the company does not have 7 members, appropriate steps should be taken to increase them to at least 7.
• If the number of directors of the company is 2, the number of directors should be increased to at least 3.
• The Articles of the company shall be suitably amended for removal of restrictive provisions Applicable to a private company