Concept of “public interest” on the basis of which turnover is made a factor for converting private company into public company in terms of sub‑section (1A) - Companies Law - Letter : No. 7/9/74‑CL‑II,

Letter : No. 7/9/74 ‑ CL ‑ II, dated 13 ‑ 5 ‑ 1975. Subject:- Concept of public interest on the basis of which turnover is made a factor for converting private company into public company in terms of sub ‑ section (1A) It has been noticed that the term public interest in companies is being given a restricted meaning to cover only shareholdings of public institutions or the Government. Thus, a private limited company or a closely‑held company is said to involve no public interest. This is an outmoded concept of public interest in a company. Public interest is to be determined also on the basis of the interest of creditors, consumers, employees and the State in the undertaking of the company, in addition to the shareholdings as such. It is on this account, that turnover has been incorporated in the Companies (Amendment) Act, 1974 as a factor for converting a private company into a public company under section 43A. This point may be borne in mind while making observations regarding public interest in matters relating to companies.