TMI BlogPrivate company to become public company in certain cases.X X X X Extracts X X X X X X X X Extracts X X X X ..... on and from the expiry of the period of three months from the date of such commencement unless within that period the aforesaid percentage is reduced below twenty-five per cent of the paid-up share capital of the private company, become by virtue of this section a public company: Provided that even after the private company has so become a public company, its articles of association may include provisions relating to the matters specified in clause (iii) of sub-section (1) of section 3 and the number of its members may be, or may at any time be reduced, below seven: Provided further that in computing the aforesaid percentage, account shall not be taken of any share in the private company held by a banking company if, but only if, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [5] ], the private company shall, irrespective of its paid-up share capital, become, on and from the expiry of a period of three months from the last day of the relevant period during which the private company had the said average annual turnover, a public company by virtue of this sub-section: Provided that even after the private company has so become a public company, its articles of association may include provisions relating to the matters specified in clause (iii) of sub-section (1) of section 3 and the number of its members may be, or may at any time be reduced, below seven. (1B) Where not less than twenty-five per cent of the paid-up share capital of a public company, having share capital, is held by a private company, the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s so become a public company, its articles of association may include provisions relating to the matters specified in clause (iii) of sub-section (1) of section 3 and the number of its members may be or may at any time, be reduced below seven.] (2) Within three months from the date on which a private company becomes a public company by virtue of this section, the company shall inform the Registrar that it has become a public company as aforesaid, and thereupon the Registrar shall delete the word "Private" before the word "Limited" in the name of the company upon the register and shall also make the necessary alterations in the certificate of incorpo ration issued to the company and in its memorandum of association. [7] [(2A) Where a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with the annual return a second certificate signed by both the signatories of the return, stating either (a) that since the date of the annual general meeting with reference to which the last return was submitted, or in the case of a first return, since the date of the incorporation of the private company, no body or bodies corporate has or have held twenty-five per cent or more of its paid-up share capital, [11] [* * *], [12] [ (b) Omitted by the Companies (Amendment) Act, 1988, w.e.f. 15-6-1988.], [13] [ (c) that the private company, irrespective of its paid-up share capital, did not have, during the relevant period, an average annual turnover of [14] [such amount as is referred to in sub-section (1A) or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) immediately preceding the commencement of the Companies (Amendment) Act, 1974, or (ii) a part of which immediately preceded such commencement and the other part of which immediately, followed such commencement, or (iii) immediately following such commencement or at any time there after; (b) "turnover", of a company, means the aggregate value of the realisation made from the sale, supply or distribution of goods or on account of services rendered, or both, by the company during a financial year;] [19] [ (c) "deposit" has the same meaning as in section 58A.] -------------------------------------- Notes:- [1] Inserted by the Companies (Amendment) Act, 1960 65 of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gle private company or by one or more bodies corporate incorporated outside India; or (aa) to a private company in which shares are held by one or more bodies corporate incorporated outside India, which or each of which, if incorporated in India, would be a private company within the meaning of this Act, if the Central Government, on an application made to it in this behalf by that private company, by order so directs; or (b) to any other private company if, but only if, each of the following conditions is satisfied, namely: (i) that the body corporate or each of the bodies corporate holding shares in the private company is itself a private company (herein-after in this section referred to as a share holding company), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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