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Private Companies, subsidiary of Public Companies becoming Public Companies

Document Cited in Related
Vincent

Important Provisions

(a) Section 3(1)(iv) of the Companies Act 1956

Procedure.

(i) A Board meeting would have to be held for amendment in the articles of association of the company to delete the restrictive clauses prescribed under section 3(1)(iii) of the Act. The number of directors has to be increased from 2 to 3 and the paid-up capital would have to be increased to atleast 5 lakhs. Further, the name of the company would have to changed by deleting the word ''private'' from the name.

(ii) Notice of the meeting has to be sent to the eligible members'' atleast 21 days prior to the meeting.

Form 23

After the resolution was passed within 30 days a Form 23 would have to be filed under the Companies Rules and Forms with the Registrar.

Return allotment

A Board meeting should be held for allotment of shares to ensure that the number of members increase from 2 to 7. A...

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