Nakul Chandra, School of Law, Christ University
Introduction
Companies in India have the option to be converted from one class of company to another, as per their requirements. A company may choose to convert from a public to a private company or vice versa, or even to another form of legal structure, including –Conversion of: one person company (“OPC”) to a private company/ public company; private company to an OPC; section 8 company into any other kind’ unlimited liability company to a limited liability company by share or guarantee; company limited by guarantee to a company limited by shares; a limited liability partnership (“LLP”) into a company; private company into an LLP and unlisted public company into LLP.
Converting a company can have significant implications for the company and its stakeholders, hence such conversion should take place only after assessing all the implications and with careful consideration.
The provisions of the Companies Act, 2013 (“Act”) read with Companies (Incorporation) Rules, 2014 provides for the conversions of companies. Section 18 of the Act deals with conversion of companies already registered under a particular class under that Act to another class, by the alteration of Memorandum of Association1 (MOA) and Articles of Association2 (AOA) of the company.
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