MCA’s latest update: Conversion of Public Company into Private Company
While filing e-form RD-1, for Conversion of Public Company into Private Company and change in a financial year, stakeholders faced certain difficulties. Hence, the stakeholders escalated the matter to the Ministry of Corporate Affairs (MCA)  . As a result, MCA came up with the specified solution and issued a notification on 11th March 2019.
Key Highlights of filing e-form RD-1
According to the latest Circular No. 03/2019, the Ministry of Corporate Affairs (MCA) have made certain clarifications regarding the filing of e-form RD-1 for Conversion of Public Company into Private Company and change in a financial year. The clarifications are as follows:
The main intent behind introducing the changes for the filing of e-form RD-1
The primary reasons for introducing the changes in e-form RD-1 are as follows:
- In the Circular No. G.S.R. 1219(E) dated 18/12/18, the MCA notified Companies (Incorporation Fourth Amendment) Rules, 2018 and asked the Regional Directors to process the applications under section 2(41) (change in a financial year) and under section 14 of the Companies Act, 2013 (conversion of public company into private company), along with e-form RD-1.
- Secondly, due to the above notification, filing RD-1 became compulsory for filing both applications u/s 14 and u/s 2(41) of the Companies Act, 2013. But stakeholders had several issues while filing RD-1.
Therefore, to ease the process of filing e-form RD-1 so that the aforesaid applications won’t get hampered due to any reason, the Ministry introduced the required changes.
For the complete notification, you can click here.