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

Sunrise Foods Private Limited, a company registered under the Companies Act, 2013, wants to become a company of a different class (for example, a public company) under the same Act. Which course does the Act provide for this?

A company may convert into another class under the Companies Act by altering its memorandum and articles as the Chapter requires. The Registrar then closes the old registration and issues a new certificate of incorporation, in the same manner as for first registration.

  1. AAlter its memorandum and articles in accordance with the Chapter and apply to the Registrar, who closes the former registration and issues a fresh certificate of incorporationCorrect
  2. BWind up the company and incorporate a new company with a fresh memorandum
  3. CObtain only a board resolution; no change in the memorandum and articles is required
  4. DApply to the Tribunal, which alone has the power to change the class of a company

Explanation

Section 18 allows a registered company to convert itself into a company of another class by altering its memorandum and articles. The Registrar, once satisfied that the Chapter's requirements are met, closes the former registration and issues a certificate of incorporation as in a first registration. Winding up or a Tribunal application is not the prescribed route.

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