Conversion of public company into private company-
Amendment is made in Rule 41 regarding Order of Hon’ble Regional Director (RD) in the matter of Application under section 14 for such conversion of status of the Company. (a) Rectify the defect or submit additional information in 15 days. The amendment is clarifying the time line of 15 days to submit e-Form RD-GNL-5 to rectify defects or incompleteness in the Application which are called for by the Regional Director and to re-submit the Application for conversion of public company into private company, (b) The original provision u/r 41 (9) (i) is deleted, which was assumed that approval is made.
That if the RD do not pass any Order either approving or rejecting the application along with reasons within 30 days from the date of hearing, failing which it shall be deemed that application has been approved and approval order shall be automatically issued to the applicant. (c) The original provisions u/r 41 (9) (ii) is amended, giving more power to RD.
-Giving power to RD, even if no consensus is received of an objection for such conversion of the company from public to private, if RD is satisfied having regard to all the circumstances of the case, that the conversion would not be against the interest of the company or is not being made with a view to contravene or to avoid complying with the provisions of the Act ,then he can approve the conversion with reasons to be recorded in writing.
-The provision is deleted which was stating that if in 60 days from filing the application while hearing or not, if consensus is not arrived then RD must reject the application
