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Part ix conversion

Nikhil Jain (Job) (28 Points)

02 May 2014

In case of Part IX conversion of a partnership firm to a private limited company, is there any cooling time available to the newly formed company to comply with the provisions of the Companies Act 1956 or 2013?? Such as Acceptance of deposit / Investments made by the company, etc.

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3 Replies

P C Agrawal (Registered independent director Past Ch) (8229 Points)
Replied 03 May 2014

Your question is vague. No general answer is possible. Companies Act is the biggest Act in the country and for different purposes different provisions are there. Hence query needs to be case specific.

P C Agrawal (Registered independent director Past Ch) (8229 Points)
Replied 03 May 2014

For existing deposits as on 31.3.2014 Sec.74 provides for refund of deposits within one year. For existing investments as on 31.3.2014 as per CA 1956 there is no issue. But for fresh investments from 1.4.2014 Sec.186 will apply.