PUBLIC COMPANY
INTO PRIVATE COMPANY:-
Ø
A public company can by passing a special resolution in an Extra Ordinary General Meeting of shareholders alter its article of association to include the restriction imposed on a private
company i. e
o
Restriction on free transfer of shares
o
Limits maximum number of members upto 50 members
o
Prohibits public subscription of shares
Ø
Prior approval of SEC is required
Ø
A certified coy of SEC order confirming
alteration together with printed copy of altered memorandum and article shall
be filed with the registrar within 90 days of order
Ø
New certificate of incorporation is required.
PRIVATE COMPANY TO
PUBLIC COMPANY:-
Ø
A private company can by passing a special resolution at an Extra Ordinary General Meeting of
shareholders alter its article to exclude the
following restrictions,
o
Restriction on free transfer of shares
o
Limitation of membership upto 50 members
o
Prohibition of invitation to public subscription
of shares.
Ø
When a private company choose to become a public
company it will have to comply with all the provisions of Company Ordinance
1984 applicable to a public company.
Ø
A private company shall within 14days of
becoming a public company is required to file with the registrar,
o
Prospectus (if it is a listed company),or
o
Statement in leu of prospectus (if it is an
unlisted company),and
o
A copy of special resolution
Ø
Following also must be complied with ,
o
Minimum number of members and directors
§
3 in case of listed company
§
7 in case of unlisted company
o
Deletion of word “Private” from its name.
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