Business Startup Ideas Business Startup Cost Type of Organizations Our Services Business Directory Price List Today Articles

 

Deemed Public Company - Section 43-A of Indian Companies Act, 1956

 

 

As per provisions of Indian Companies Act, 1956 there are certain circumstances under which a Private Company will be treated as Deemed Public Company. According to Section 43-A of Indian Companies Act a private company shall be deemed as a public company under the following circumstances.

(i)           When 25% or more of the paid up share capital of the private company is held by one or more bodies corporate

For computing 25%, shares held by a banking company shall not be taken into account in the following cases:

(a)  Where the shares form part of the subject matter of a trust and not having been set apart for the benefit of any Body corporate are held by banking company as a trustee of that trust.

(b) Where shares form part of the estate of a deceased person having been bequeathed by will to any Body corporate are held by banding companies either as on behalf of, the executor or administrator of the deceased person the above provisions are not applicable in the following cases:

 

a.    To a private company of which the entire paidup share capital is held by another single private company or by one or more bodies corporate incorporated outside India.

b.    To a private company in which shares are hold by foreign companies, which, if incorporated in India, would have been private companies, if the central government on an application made by that company, by order so directs

c.    To a private company where all shareholding companies are private companies and no Body corporate is a member of such shareholding companies and the total share holders of the private company and other shareholding companies does not exceed fifty excluding past and present employees who are members.

(ii)          Where the annual turnover of a Private Company is less than such amount as may be prescribed to consider as deemed public Company.

(iii)        When Private Company holds 25% of the paid up share capital of public Company

(iv)        When Private company accepts or renews deposits from the public other than its members, directors or relatives

A Private Company becomes deemed Public Company in any of the abovementioned circumstances. Such a company must inform the registrar about this fact within 3 months to delete the word “Private” from the name of the company and amend Certificate of Incorporation.

But it is important to mention here that after becoming deemed public company under the four clauses stated above, a private company may continue to retain provisions as required under section 3(1)(iii) of the Act and the number of its members may also be reduced below seven.
 

Restrictive and Unfair Trade Practice – Section 2(c) and Section 36A of the Monopolies and Restrictive Trade Practices Act, 1969

How to file complaint under Consumer Protection Act 1986 and amendment Act 2002, who can file complaint?

Compensation under the Motor Vehicles Act, 1988 and 1939 –Insurer’s liability, driving without licence, uninsured vehicle and liability

Expenses disallowable for tax and expenses allowed on payment basis only – Income from Business or profession

Income from House Property-Deemed Income, Exemption, Deductions, Calculation of Tax

Time barred-debt, promise to pay time barred Debt- Limitation Period- Section 25(3) of Indian Contract Act, 1872

Writ Jurisdiction of the Supreme Court of India –Article 32 and High Court – Article 226 of Constitution of India

Limitation period for taking cognizance of offences- Section 468, 469, 470, 471, 472 and 473 of Code of Criminal Procedure 1973

Absconding to avoid summons, Preventing Service of Summons, Non Attendance, Non Production of documents, false information, Refusing oath, answer, sign statement, False statement on oath False information - Section 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182 of IPC

Restriction on Powers of the Board of Directors-Section 293 of the Indian Companies Act 1956

 

 

 

HOME  About Us   Contact Us    Terms and Conditions   Disclaimer   Privacy Policy   Sitemap