Conversion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2010 hi
I have seen Public Companies converting into Private companies ,So can you please tell me what is the benefit of this Conversion ?

Rasesh

Rasesh (Expert)
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29 January 2010 A Private limited has lesser number of restrictions as well as compliance issues under the Companies Act. A private limited company also enjoys exemption from compliances of many provisions.

A Private limited company is considered similar to a closely held company, though it does not always hold true. The ROC would also be less vigilant on a private limited company as compared to a public company.

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CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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30 January 2010 in addition public company has responsibility toward public shareholder as it is not in case of private company bcz promoters are the only shareholders and sebi and stock exchange rule and regulations implications are also not applicable to private company.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2010 ya But what i knw is that Public Companys are still better than Private companies as they can raise money from the Public and enjoys better image ..
Is that true ?

Rasesh

Rasesh (Expert)
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01 February 2010 True to some extent.

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