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CMA Final · Corporate and Economic Laws · Company Formation and Conversion

Under the Companies Act, 2013, how may a company of one class convert itself into a company of another class?

A company converts by altering its memorandum and articles as the Chapter requires. The Registrar then closes the former registration and issues a new certificate of incorporation in the same manner as a first registration, so the earlier registration does not continue.

  1. ABy altering its memorandum and articles in accordance with the provisions of the Chapter, followed by a fresh certificate of incorporation from the RegistrarCorrect
  2. BBy a Board resolution alone, with the old certificate continuing
  3. CBy the Registrar keeping the former registration open alongside the new one
  4. DBy winding up and incorporating an unrelated new company

Explanation

Section 18(1) permits conversion by altering the memorandum and articles. Under section 18(2), the Registrar closes the former registration and issues a certificate of incorporation as in first registration. A Board resolution alone or a dual registration is not provided.

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