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

Kaveri Textiles Private Limited alters its memorandum and articles to convert itself into a company of another class under the Companies Act, 2013. What does the Registrar do on the company's application, once satisfied that the registration provisions have been complied with?

The Registrar closes the company's former registration and, after registering the documents, issues a certificate of incorporation in the same manner as its first registration. This applies once he is satisfied that the registration provisions have been complied with. No Tribunal sanction is involved.

  1. ACloses the former registration and issues a certificate of incorporation in the same manner as its first registrationCorrect
  2. BKeeps the former registration open and issues a supplementary certificate alongside it
  3. CRefers the application to the Tribunal for sanction before any certificate can be issued
  4. DCancels the company's existing debts and contracts and issues a fresh certificate

Explanation

Section 18(2) provides that the Registrar, after satisfying himself that the registration provisions have been complied with, closes the former registration and, after registering the documents, issues a certificate of incorporation in the same manner as the first registration. The former registration is not kept open, and no Tribunal sanction is required under this section.

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