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Showing posts from February, 2017

WHETHER FIRST DIRECTOR – REGULARIZATION MANDATORY

WHETHER FIRST DIRECTOR – REGULARIZATION MANDATORY BACKGROUND: Many professionals have been raising question on interpretation/ provisions relating to Regularization of First Director:- Situation: As per Act, Company can appoint first director by mention the name of directors in the Article of Association or in case of article don’t give any name in that case subscriber of the MOA who are individual shall be deemed to be first Director. v   Whether first director appointed as per section 152(1) (by name in AOA or as subscriber of MOA) mandatory to regularize or not? Let’s first discuss the questions: Various professional have the view that in position of appointment of First Director either through AOA or through subscriber sheet their term will be upto the date, they resign from the post or retirement by rotation. Other professional have the observation that tenure of first directors will be upto the First AGM of the Company, in first AGM Company have to regu

PROVISIONS OF COVERSION OF PUBLIC COMPANY INTO PRIVATE COMPANY

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PROVISIONS OF COVERSION OF PUBLIC COMPANY INTO PRIVATE COMPANY Keeping in view the relaxations provided to a Private Company, many public companies have converted into Private Companies or in the process of such conversion. Through this brief write up an attempt has been made to unlock the technicalities related to Conversion of Public Company into Private Company prescribed under Companies Act, 2013. Power of Conversion of Public Company into Private Company has been transferred to NCLT (Tribunal) [1] w.e.f. 1st June, 2016 vide MCA notification S.O. 1934(E). At the time of Conversion Company have to make several alterations. Some of them are mentioned below: R EGULATORY REQUIREMENTS: Conversion of status of company from public to private would become effective form the date of receipt of the approval of the Registrar by means of issuing a new certificate of Incorporation. Section 13, 14, 15 & 18 of Companies Act, 2013, Rule 33(2) Companies (Incorporation