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CS Executive · Setting Up of Business, Industrial and Labour Laws · Conversion of Business Entities

Kaveri Textiles Limited has applied to the Registrar to convert into a company of another class under Section 18. After the Registrar is satisfied that the registration provisions of the Chapter are complied with, what does the Registrar do?

The Registrar, once satisfied that the registration provisions of the Chapter are complied with, closes the company's former registration and, after registering the documents, issues a certificate of incorporation in the same manner as its first registration, as provided in Section 18(2).

  1. AKeeps the former registration alive and issues a supplementary certificate
  2. BCloses the former registration and issues a certificate of incorporation in the same manner as its first registrationCorrect
  3. CCancels the company's name and asks it to apply afresh after six months
  4. DRefers the application to the Tribunal for sanction before issuing any certificate

Explanation

Section 18(2) requires the Registrar, on being satisfied of compliance, to close the former registration and, after registering the documents, issue a certificate of incorporation in the same manner as its first registration. A supplementary certificate is not contemplated, and no Tribunal sanction is mentioned in this section.

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