Even though there are thousands of private companies out there, every private company wants to go public at some point because it helps them grow. Through an initial public offering (IPO), a company can sell its shares to the general public and become a public company.
After an initial public offering, shares in a private limited company can now be transferred.
Public limited companies are able to obtain funding and gain easy access to it because, in contrast to private businesses, there is no limit on the number of members. Growth and adaptability are ideal reasons to move from private to public ownership.
According to the Companies Act of 2013 and the Companies (Incorporation) Rules of 2014, a company wishing to convert from a private limited company to a public limited company will need to follow the following procedures:
At least seven days before the meeting, a copy of the agenda should be sent to each member’s registered address.The following notice should be sent to the member’s registered address to be discussed at the Board Meeting: –The shareholders’ approval of a Memorandum of Association (MOA) amendment or adoption
Amendments to existing articles of association (AOA) or new articles of association
Public limited companies are created from private limited companies.
A person authorized to hold an EGM is required to distribute the notice of the EGM.
The EGM must be held at a specific time, date, and location.
The Companies Act of 2013 stipulates that public limited companies must have a minimum of three directors. The EGM notice ought to contain the following information:
A notice of the EGM may be distributed by the Company Secretary/Director as soon as possible following the Board Meeting:
The notice period for an EGM is 21 days, but it can be shortened under certain conditions: -Make sure that 95% of the members who will be able to vote at the meeting agree with you.
– Writing At the EGM, shareholders will vote electronically to approve resolutions.
Submitting the form with the RoC:
The Registrar of Companies must be informed of the resolutions following the EGM, and the process of filing the forms must be completed within the allotted time.
a) The E-Form MGT-14:
As soon as the respective approved resolutions have been passed, the RoC should receive a completed MCA form and the following attachments.
As required by Section 102 of the Act, please find attached the notice and explanation of the EGM.
– A certified copy of the new Memorandum of Agreement and the EGM-approved resolutions.
The AOA has been rewritten.
b) E-Form INC. 27:
The following documents must accompany the application for a private limited company to public limited company conversion in addition to the form:
- The minutes of the meeting
- Attached is the latest AOA.
- The new MOA copy
- The following resolutions were approved by the EGM.
Members of the company and information about them Documents needed:
- Digital Signature Certificates, or DSCs, must be present for each director.
- The identification number for directors (DIN).
- All directors are required to provide proof of identity.
- All directors are required to supply proof of address.
- A picture of each director should be the size of a passport.
You can find a proof of business address here:
- documents regarding the ownership of property.
The following are steps involved in renting a home:
- A certificate of no objection has been signed by the owner.
- Arrangement for Rent: A recent utility bill is highly recommended.
- certified financial statements from the company.
- a receipt confirming that the most recent income tax return was submitted.