WRITE SHORT NOTES ON DEEMED PUBLIC COMPANY?



WRITE SHORT NOTES ON DEEMED PUBLIC COMPANY?



The concept of private company becoming a public company is stated under sec.43 A of
Indian Companies Amendment Act 1960.

The following were the provisions of section 43 A.

·         Where not less than 25% of the paid-up share capital of a private company is held by one or more bodies corporate, such a private company shall become a public company from the date on which such 25% is held by body corporate. (section 43 A (1)

·         Where the average annual turnover of a private company is not less than Rs. 10 crores during the relevant period, such a private company shall become a public company after the expiry of the period of three months from the last day of the relevant period when accounts show the said average annual turnover. (section 43 A (1A)

·         When a Private company holds not less than 25% of the paid up share capital of a public company, the private company shall become a public company from the date on which the private company holds such 25% (section 43A (1B)

·         When a private company accepts, after an invitation is made by an advertisement or renews  deposits from the public other than its members, directors or their relatives, such private company shall become a public company (section 43a 1C)

The above provisions of section 43A shall not apply on or after the 31-12-2000 (section 43A (11). Deemed concept of a public limited company on account of the above four factors is abolished (as per Companies Amendment Act 2000).

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