+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession)
+--- Forum: Students (https://www.accountancy.com.pk/forum/forum-students)
+--- Thread: Re-Registration (/thread-re-registration)
Re-Registration - Zikria Yamin - 04-29-2007
Dear Seniors
As you know that Every Public company has to obtain trading certificate before starting any business activity and using borrowing powers.
My question is that, If a private company Re-Register itself as a Public company, It is already going concern, so whether it is mandatory for it to get trading certificate or not.
- Muhammad Amir - 04-29-2007
Very good question YES it definitely need to obtain Trading Certificate upon conversion...actually one company (A public One) can start its business without invitably after the issuance of trading certificate it can even start its business even upon issuance of Certificate of Incorporation but for all the transactions held by directors of such company(piblic) the company(public) will not be liable to reimburse her(company's)directors that is the company can repudiate to pay her directors for tracsaction done by them(directors)..and director of such company can't claim for damages from company because she(public company) is already trading without issuance of trading certificate....
Regards
Muhammad Amir
- Zikria Yamin - 04-30-2007
Thanks
If the company made some contracts before its Conversion and still not performed his part of obligation then after conversion and before getting trading certifcate,whether the company repudiate these contracts and held Directors or other Officers involved in making such contracts Liable or It is still itself liable for them.
- Muhammad Amir - 05-01-2007
Contracts that are made before the conversion will have it's implications as per private company rules...Company whether private or public is a seperate legal entity so the creaditors will take legal actions against company not against directors'...but if a company is converted into public company and still didn't receive it's Trading certificate can held director's liable for those transactions made before issuance of trading certificate but AFTER CONVERSION
- Zikria Yamin - 05-02-2007
Thanks Brother Amir.
- Muhammad Amir - 05-02-2007
You are most Welcome
- sara_khan - 05-17-2007
i dont think that a public company can be transform to private Ltd
- Muhammad Amir - 05-20-2007
A Private Company can transform to Public Company and a Public Company can also transfrom to Private Compay however there are some rules...
<b>Conversion of Public Company to Private-</b>
A Company needed a Special Reolution with minorty protection that is those who have 15% shares or Voting Rights can writ a petition from court against company.....
<b>Conversion of Private Company to Public Company-</b>
The company would require only a Special Resolution
<b>Conversion of Limited Company to Unlimited Company</b>
The Company would require a <b>WRITTEN CONSENT OF EVERY MEMBER</b>
<b>Conversion of Unlimited Company to Limited Company</b>
The Company would require a Special Resolution....but if the company after re-registration dessolve within three years then company would be traated as it were an Unlimited Company and those who were member at the date of re-registration will be liable to discharge the debths of the company with liquidation expenses
<i><b>How ever a Company can't be converted from Company Limited by Gurantee to Company Limited by Shares and vice versa</b></i>
Regards
Muhammad Amir
- sara_khan - 05-25-2007
SORRY ALL GUYS AND GIRLS I WAS WRONG TO SAY THAT PUBLIC LTD CANT BE CONVERTED INTO PRIVATE LTD SO I WAS WRONG ACTULLY ITS IS POSSIBLE AS MUHAMMAD AAMIR SYS THAT. SEC 44 OF COMPANIES ORDINANCE DEAL WITH IT .
ONCE AGAIN SORRY TO ALL
ALLAH HAFIZ
- Muhammad Amir - 05-28-2007
Mizzz Sara here Me and Zikria both are students of English Varinats and if you are student of Pakistani Variant then things may be changed however their will not be much change in Pakistan and UK Law because Pakistanis were also the "GHULLAM OF FARRANFIIE" for more than 450 Years...Infact they are more devotee "Ghulam" right now Laugh Out Loud......