CA Foundation · Business Laws · The Companies Act, 2013
Mehta Textiles Pvt Ltd wishes to alter its articles of association to convert itself into a public company. Which step is legally required for this alteration?
Altering articles, including to convert a private company into a public company, requires a special resolution passed by members, and the altered articles must be filed with the Registrar. A board resolution or an ordinary resolution alone is not sufficient for this change.
- AOnly a resolution of the board of directors is enough
- BA special resolution of members, followed by filing with the RegistrarCorrect
- CAn ordinary resolution of members, with no filing needed
- DApproval of the Supreme Court only
Explanation
Articles can be altered only by passing a special resolution. Where a private company converts into a public company, the alteration must be filed with the Registrar within the prescribed time. A board resolution alone cannot alter the articles, and an ordinary resolution is insufficient.
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