If ABC Pvt ltd company's annual average turnover exceeds 25 crores for the 3 consecutive years it becomes deemed to be a public company under sec43A whereas in this company the maximum numbers is 2 only. so what should be done now to retain its original status? also managerial remuneration had been increased from 2lac to 3.5 lac this year but no resolution had been passed and approved in AGM and e-forms had been filed . pls help me
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Please help me regarding sec 43A of Companies Act, 1956
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Certain private companies are deemed to be public companies by virtue of section 43 A, viz.-
•when 25% or more of its paid-up share capital is held by one or more body corporate;
•when its average annual turnover (during the last 3 years) exceeds Rs. 25 crores;
•when it holds 25% or more of the paid-up share capital of Public Company; or
•when it accepts or renews deposits from the public after making an invitation by an advertisement.
However, as per the Companies (Amendment) Act, 2000 effective from 13th December 2000 such deemed public limited companies are required to intimate to the Registrar to revert back to their original status as a private limited company.
Sec 43A HAS BEEN ABOLISHED BY AMENDMENT OF 2000. AT THE TIME GOVT. HAS PROVIDED OPTION TO RETAIN STATUS OF COMPANY AS PRIVATE BY INTIMATION.....IF THE COMPANY HAD NOT OPTED FOR IT, IT WILL BE TREATED AS PUBLIC CO. ALL PROVISIONS APPLICABLE TO PUBLIC COMPANY WILL BE APPLICABLE.
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