Whenever private companies plan to expand and require more capital resources, they would convert themselves into public companies. By becoming public companies they can issue shares or debentures to the public and get the required amount of capital.
The main advantage of forming a public limited company is that the shares of the company may be listed on the Stock Exchange. This allows the company to raise capital by selling shares to the public, while existing shareholders can buy and sell shares easily.
What are the disadvantages for conversion of Private Limited to Public Limited?
Disadvantages of a company can be expensive to establish, maintain and wind up. the reporting requirements can be complex. ... if directors fail to meet their legal obligations, they may be held personally liable for the company's debts
What are the reasons for conversion of Private Limited to Public Limited?
The conversion of private limited company is generally done due to the following reasons: • Recognition, and • Ease of raising funds.
Call Board Meeting
Issue of EGM Notice
Holding of Extra Ordinary General Meeting on due date and pass the necessary Special Resolution, to get shareholders’ approval for Conversion of Private Company into a Public company along with alteration in articles of association under section 14 for such conversion.
File form MGT-14 for filing special resolution passed for conversion of Private Limited in to a public limited with ROC with mandatory attachment i.e altered MOA/AOA
File form INC-27
New Pan Card Allotted