Conversion of private company into public company under the act 1956
The companies act 1956 under the provision of section 43(A) of deemed public company is converted into a private company. The conversion of private company into public company may be either automatic or there may be any positive and true reasons for the modification.The difference between public company and private company in the matter of flotations. Because a private company those who form they do certainly also float, but no such floatation is available in case of a public limited company.
In the case of a public limited company the last word of the name company with Limited and with in the case of a private limited company as the last words of the name is “Private Limited“. The registration of a company has both private limited company and public limited company is registered and conversion of private limited company into a registration of public limited company their names in Chennai.The minimum member of a private limited company is two and the public company has three members of a company.
Conversion of private company into public company
The section (43) and (44) of the companies act 1956 to provide various circumstances by which a private company can be converted into a public company. In such case the privileges and exemptions enjoyed by private companies.
The companies act 1956 of the section 14 is the important section where the conversion of private company into a public limited company. The various circumstances under the companies act 1956 was as follows:
- The private company is converted into public company in the section 43 and 44 conversion.
- A private company to maintain as a private company though becoming a public company under the section 43.
- A private company is deemed to be a public company on the basis of shareholding in the section 43-A.
- A private company is deemed to be a public company on the basis of turnover under the section of 43A(1A).
- A private company is deemed to be a public company on the basis of investment in the section 43A (1B).