PRIVATE COMPANY CEASES TO BE A PRIVATE COMPANY
Ø
A private company shall cease to be a private
company and shall be treated as a public company, if
o
It fails to restrict free transfer of shares.
o
It fails to restrict maximum number of members
upto 50 members.
o
It does not prohibit public subscription of
shares.
Ø
A private company or any other interested person
may apply to the SEC to be relieved of consequences of default, if
o
Failure was accidental
o
Failure was due to inadvertence
o
Failure was due to some sufficient cause
o
Any other ground which is just and equitable
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