Applicability of other provisions of the Companies Act on deemed conversion by virtue of the section

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..... #8209;section (6) thereof. 2. All the provisions of the Act which are applicable to a public company will, after 28‑3‑1961, generally apply to a company which has become a public company by virtue of section 43A. However, the provisions of sections 12(1) and 45 which require a public company to have at least seven members will not apply to a deemed public company. The articles of association of such a company may continue to contain a provision similar to that in section 3(1)(iii) which is applicable to private companies. Section 44 also is not applicable to a private company, when it becomes a public company by virtue of section 43A and consequently such a company will not be required to file with the Registrar .....

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..... on have been taken to refer to the Companies (Amendment) Act, 1960 which came into force on 28‑12‑1960. This is not correct and it is pointed out for the information of all concerned that section 309 with all its existing sub‑sections has been in force since 1‑4‑1956, when the Companies Act was promulgated. The Companies (Amendment) Act, 1960 has brought about certain changes in the existing sub‑sections. The words this Act occurring in sub‑section (8) of section 309 , therefore, refer to the Companies Act which came into force on 1‑4‑1956, and not to the Companies (Amendment) Act, 1960. The provisions of sections 309 and 198 would, therefore, be applicable to public companies o .....

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..... k exemption from the provisions of section 43A under sub‑section (6)(a) thereof, would not be entitled to such exemption unless holdings by nominees of the parent company are restricted to what is permitted to under sections 49(2) and 49(3). For this limited purpose, the Department has construed the word company appearing in these two sub‑sections to include a body corporate . 6. In respect of the various representations made to the Central Government to the effect that a large number of private companies which had technically become public companies on 28‑3‑1961 under the provisions of section 43A(1) could not, for one reason or the other, reorganise their shareholdings before 28‑3‑1961 so .....

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