Dear Professional Friends,
3rd Proviso to S.366(2) dealing with conversion of LLP into a Company has a pre criteria which statess that "a company shall be registered in pursuance of this section as a company limited by shares only if it has a permanent paid-up or nominal share capital of fixed amount divided into shares, also of fixed amount, or held and transferable as stock, or divided and held partly in the one way and partly in the other, and formed on the principle of having for its members the holders of those shares or that stock, and no other persons;"
Question:
An LLP does not have the concept of share capital but how does one comply with the above provision if they want to convert their LLP into a Private Limited Company under S.366 of the Companies Act? Is it possible to have share capital in LLP?
CAclubindia
