Question
Which section of the Companies Act delas with the
provision of conversion of companies already registered?Solution
Section 18: Conversion of companies already registered This section explicitly provides the mechanism for a company of one class (e.g., Private Limited) to convert itself into a company of another class (e.g., Public Limited) by altering its Memorandum and Articles of Association.
- Key Provision: Upon compliance with the requirements, the Registrar issues a new Certificate of Incorporation, but this conversion does not affect any debts, liabilities, or obligations incurred by the company before the conversion.
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