Conversion Private to Public Company
Public to Private Company
Section 26 of Companies Act 2016 Change from public to private company.
A public company having a share capital may convert to a private company by lodging with the Registrar a copy of a special resolution and there are other requirement that need to be adhere too. In order to convert to private company they need to alter an appropriate name, provisions or its memorandum or articles as is necessary to impose the restriction, limitations and prohibitions.
A private company may, subject to anything contained in its memorandum or articles, convert to a public company by lodging with the Registrar. A copy of a special resolution determining to convert to a public company and specifying an appropriate alteration to its name, a statement in lieu of prospectus and a statutory declaration. However, if there is restriction, limitations and prohibition included in the memorandum of articles of the company shall cease to form the company.
Besides, a conversion of a company pursuant to subsection (1) or (2) shall not affect the identity of the company or any rights or obligations of the company or render defective any legal proceedings by or against the company, and any legal proceedings that could have been continued or commenced by or against it prior to the conversion may, notwithstanding any change in the company’s name or capacity in consequent of the conversion, be continued or commenced by or against it after the conversion.