relating to section 43A of the companies act

This query is : Resolved

susheel (Querist)
Follow

08 January 2010 dear all..

back ground:
one company we audit was a deemed public(otherwise a private company) by virtue of the erst while section 43A(25% shareholding by a public company)now after the amendment, it dint inform the ROC about its intention to convert into a private company,however it operated as a private company.

My query:
1) can the company assume the status of a private company and continue to operate as one?
2) is the reconversion into a private company deemed?
3) what are the consequences if otherwise.

i would appreciate your prompt response as i suspect non-compliance with the provisions of the companies act if it is a public company.. thank you.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

09 January 2010 1) No. Because as per section 43A(4) the company shall continue to be a public company until it has again become a private company with the approval of the Central government and in accordance with the provisions of the Companies Act,1956.
2) No.See 1) above.
3) As per section 43A (2) within 3 months from the date on which the company became a public company,information should have been given to ROC. Violation attracts punishment with fine to the company and to the officer who was in default which may extend to Rs.500/- per day during the period for which default continues.

Message likes : 1 times

susheel

susheel (Querist)
Follow

09 January 2010 dear sir..

section 43A(2) deals with the case where a private company becomes a deemed public company..and intimation to roc within 3 months etc...
my present case is.. the company after becoming a public company as mentioned in 43A(2)... reconverting into a private company after the amendment of the companies act in the year 2000

kindly reply my queries after considering this..thanks for your effort

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now