Conversion of Private Company into Public Company

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Convert private company into a public company
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The public company has the following procedures
prescribed in the act for convert private limited
company for their status. Similarly, a public
limited company can convert itself into a private
limited company.
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A company which is initially incorporated as a
private limited company. The company can change
its status into that of public limited company.
The public company has the following procedures
prescribed in the act for conversion of status.
Similarly, a public limited company can convert
itself into a private limited company.

• Circumstances for conversion of private limited
  company into public limited company

A private limited company can convert itself into
a public limited company in the following
circumstances
(a) voluntarily on its own
volition
(b) by reason of default
(c) by operation
of law
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Conversion of a private limited company into
public limited company on own volition

• A private limited company can convert itself into
  a public limited company on its own volition by
  complying with the following requirements
• (i) Change the company name by passing a special
  resolution in the manner provided in section 21.
  If any change in a company name. It  can be
  occurred by passing a particular declaration.
  Obtaining approval of the central government by
  delegation registrar of companies.
• Approval of ROC is not necessary where the only
  difference in the name is the element thereto or
  deletion therefrom of the word Private
  consequent on the conversion. In conformity with
  the provisions of the act, of a public limited
  company into private limited company or a private
  limited company into public limited company.
• (ii) alter the articles  to delete the
  prohibitions, restrictions and limitations
  contained in section 3(1).
• (iii) increase the number of members to more than
  fifty.

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A private limited company can convert itself into
a public limited company on its own volition by
complying with the following requirements

• (I) Change the company name by passing a special
  resolution in the manner provided in section 21.
  If any change in a company name. It  can be
  occurred by passing a particular declaration.
  Obtaining approval of the central government by
  delegation registrar of companies.
• Approval of ROC is not necessary where the only
  difference in the name is the element thereto or
  deletion therefrom of the word Private
  consequent on the conversion. In conformity with
  the provisions of the act, of a public limited
  company into private limited company or a private
  limited company into public limited company.
• (ii) alter the articles  to delete the
  prohibitions, restrictions and limitations
  contained in section 3(1).
• (iii) increase the number of members to more than
  fifty.

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For conversion of a private company into a public
company the following steps are required to be
taken

• 1.take the necessary decision in the board
  meeting. Define the agenda, time, place for
  converting a meeting to alter the articles of
  association consequently. The company name by
  particular resolution.
• 2.Issue notices for declaring the special
  declarations with eligible informative statements
  in the general meeting.
• 3.Convene the meeting and pass the special
  declaration to the following effect
•               (i) To cancel those articles which
  are needed to be considered in the articles of a
  private limited company only. Such other articles
  why do not assign to a public limited company. It
  should be cancelled and those which implement
  should be attached.
•           (ii) Consequent to the above
  changes, to delete the word Private from its
  company name.

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• 4. The approval of central government by
  delegation registrar of companies to change of
  name wherever necessary. Such registration is not
  required. Where the change relates only to the
  addition to or deletion from the name. The word
  Private incidental on rectification.
• 5. Register either the description in the form as
  ordered under schedule II. The statement in lieu
  of descriptions in the form as imposed under list
  IV within 30 days of passing the above special
  resolution.
• 6. Filling of form no. 29 is not required by a
  private limited company converted into a public
  limited company for their registration
  activities.
• 7. Register the special declaration passed and
  the explanatory statements in form No. 23 with
  the registrar within 30 days of passing them. The
  Chennai (ROC) is required for their registration.
• 8. Assign to the registrar for providing a fresh
  certificate of Registration in the changed name.
  The present company name with the word Private
  deleted. On issue of such fresh certificate, the
  company name is to be changed and converted a new
  company. It is the final stage of registering a
  company registration.
• It should thus be noted that company registration
  is to be finalized. The company becomes a public
  limited company. The special resolution to change
  the articles to make it a public limited company
  is passed. The change of a company name becomes
  effective. Only on the issue of the fresh
  certificate of registration by the registrar in
  Chennai (ROC) for changed company name.

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Conversion of a private company into a public
company by reason of default
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A private limited company is required by law  to
provide by its articles for the following namely

• (i) restrictions on the rights to transfer its
  shares
• (ii) restriction on the maximum number of its
  members which should not exceed fifty.
• (iii) prohibition on any request to the public to
  approve for any shares in or debentures of the
  company registration is to be approved.
• (iv) The period on any approval or invitation of
  deposits from persons other than its directors,
  members or relatives.

Where a failure is made with the aforesaid
restrictions, prohibition and limitation are not
having in the clauses of a private limited
company. The company shall vanish to be a private
limited company. It shall not be authorized to
the exemptions and privileges  consulted on
private company for purposes of this act.
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A petition praying for relief from consequences
of failure to simply with conditions constituting
it a private limited company. It is to be form to
the regional bench of the company law board in
Chennai authorities. The regulations 1991 along
with an application fee of Rs.200/-by the
following documents.

• (i) Certified true copy of articles of
  association and memorandum
• (ii) Copy of document showing that default has
  been involved in following with the provisions
  ordered down in clause.
• (iii) The legal document verifying the petition.
• (iv) Bank draft showing payment of request fee.
• (v) Memorandum of impression in Form No.5 of
  Annexure 1.