relating to section 43A of the companies act

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susheel (Querist)
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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)
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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.

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susheel

susheel (Querist)
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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

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