According to Section 231 and 232 of the Companies Act 1994 a public limited company may convert into private limited company by fulfilling the following condition:
- if the public limited company having members less then 50 (fifty)
- if passed a special resolution for this conversion by the shareholders of the company in its meeting.
- by excluding the articles which is related to a public company and include therein provision relating to a private company.
- Written consent of secured creditors will have to be obtained before passing resolution in this regard.
- the shares will have to be de-listed if these are quoted in the stock exchange(s).
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