Section 251 of the Companies Act, 2013
Section 251 of the Companies Act, 2013 – Application of Sections Relating to Conversion of Companies
Overview:
Section 251 lays down the rules for applying the provisions of the Companies Act to various types of company conversions.
It essentially specifies how the Act’s provisions will apply when a company converts from one type to another.
Key Points:
Types of Conversions Covered:
Conversion of a private company into a public company.
Conversion of a public company into a private company.
Conversion of a company limited by shares into a company limited by guarantee.
Conversion of a company limited by guarantee into a company limited by shares.
Conversion of a company limited by shares or guarantee into an unlimited company.
Conversion of an unlimited company into a company limited by shares or guarantee.
Application of Sections:
When such conversions take place, the provisions of the Companies Act, 2013 will apply accordingly to regulate:
The procedure for conversion.
Filing and compliance requirements.
Effect of conversion on the company’s registration, name, and other legal aspects.
Intended Purpose:
To ensure smooth transition and legal continuity for the company undergoing conversion.
Avoid any legal ambiguity during or after the conversion process.
Summary:
Section 251 serves as a guiding provision that ensures that all rules and procedures prescribed by the Companies Act are properly applied whenever a company changes its form or type under the law.
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