PRIVATE COMPANY BECOMES PUBLIC COMPANY--CORPORATE LAWS

SECTION 43A :

(1) Save as otherwise provided in the section, where not less than 25 percent of the Paid Share Capital of a Private Company having a share capital, is held by one or more bodies corporate, the private company shall : -

(a) on and from the date on which the aforesaid percentage is first held by such body or bodies corporate, or

(b) where the aforesaid percentage has been first so held before the commencement of the companies ( Amendment Act) 1960, on and from the expiry of the period of three months from the date of such commencement unless within the period the aforesaid percentage is reduced below twenty five percent of the paid up share capital of the private company, become by virtue of this section a Public Company :

Provided that even after the private company has so become a public company its articles of association may include provisions relating to the matters specified in Clause (iii) of subsection (1) of Section 3 and the number of its members may be , or may at any time be reduced, below seven:

Provided further that in computing the aforesaid percentage, account shall not be taken of any share in the private company held by a banking company, if , but only if, the following conditions, or satisfied in respect of such share, namely ;

(a) that the share-

(i)                forms part of the subject matter of a Trust,

(ii)              has not been set apart for the benefit of any body corporate, and

(iii)            is held by the banking company either as a trustee of that Trust or in its own name on behalf of a trustee of that Trust; or

  

( b) that the share-

(i) forms part of the estate of a deceased person,

(ii)              has not been bequeathed by the deceased person by his will to any body corporate, and

(iii)            is held by the banking company either as am executor of administrator of the deceased person or in its own name on behalf of an executor or administrator or the deceased person;










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•  CORPORATE LAWS—MERGER, DE-MERGER,

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