The Company Act does not allow a Public Company to turn itself into a private company, but it neither prohibits such conversion. The conversion can take place in following ways:-
- A Public company can be converted into a private company by altering the articles, incorporating the three restrictions, mentioned in section 3(i)(iii).
- Approval of the central government is necessary for converting a Public company into a private company.
- Special resolution is to be passed within 30 days, after obtaining the approval of the Central Government for conversion.
- The word private Ltd. is used.
The conversion of a public company into a private company does not affect the identity of the company.
One Comment