{"id":3945,"date":"2019-03-12T13:24:20","date_gmt":"2019-03-12T13:24:20","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=3945"},"modified":"2020-06-29T11:23:53","modified_gmt":"2020-06-29T05:53:53","slug":"conversion-of-public-company-into-private-company","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/conversion-of-public-company-into-private-company\/","title":{"rendered":"MCA&#8217;s latest update: Conversion of Public Company into Private Company"},"content":{"rendered":"\n<p class=\"has-drop-cap\">While <strong>filing e-form RD-1<\/strong>, for Conversion of <strong>Public Company into Private Company<\/strong> and change in a financial year, stakeholders faced certain difficulties. Hence, the stakeholders escalated the matter to the <strong>Ministry of Corporate Affairs (MCA)<\/strong> <a href=\"http:\/\/www.mca.gov.in\/\">[1]<\/a> . As a result, MCA came up with the specified solution and issued a notification on 11<sup>th <\/sup>March 2019.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a358ece71f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a358ece71f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/conversion-of-public-company-into-private-company\/#Key_Highlights_of_filing_e-form_RD-1\" title=\"Key Highlights of filing e-form RD-1\">Key Highlights of filing e-form RD-1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/conversion-of-public-company-into-private-company\/#The_main_intent_behind_introducing_the_changes_for_the_filing_of_e-form_RD-1\" title=\"The main intent behind introducing the changes for the filing of e-form RD-1\">The main intent behind introducing the changes for the filing of e-form RD-1<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Highlights_of_filing_e-form_RD-1\"><\/span><strong>Key Highlights of filing e-form RD-1<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the latest <strong>Circular No. 03\/2019<\/strong>, the Ministry of Corporate Affairs (MCA) have made certain clarifications regarding the filing of e-form RD-1 for <strong>Conversion of Public Company into Private Company<\/strong> and change in a financial year. The clarifications are as follows:<\/p>\n\n\n\n<div style=\"padding: 20px; border-radius: 4px; border: 6px solid; box-height: 350px; box-width: 90px; border-color: Orange;\">\n<ul>\n<li>Until the MCA deploys the revised form RD-1, the MCA has clarified and advised all the Regional Directors to process e-Form RD-1 for applications u\/s 2(41) and u\/s 14 of the Companies Act, 2013, if the applicant selects the option &#8216;others&#8217; on account of aforesaid applications.<\/li>\n<li>Furthermore, MCA also clarifies that applications filed in e-form no. RD-1 must not be rejected merely on the condition that &#8220;others&#8221; is selected and &#8220;e-from is not available&#8221;. Again, this will be in practice until the Ministry of Corporate Affairs deploys the revised form.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_main_intent_behind_introducing_the_changes_for_the_filing_of_e-form_RD-1\"><\/span><strong>The main intent behind introducing the changes for the filing of e-form RD-1<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The primary reasons for introducing the <strong>changes in e-form RD-1<\/strong> are as follows:<\/p>\n\n\n\n<ul><li>In the <strong>Circular No. G.S.R. 1219(E) dated 18\/12\/18<\/strong>, the MCA notified Companies (<strong>Incorporation Fourth Amendment<\/strong>) Rules, 2018 and asked the Regional Directors to process the applications under section 2(41) (change in a financial year) and under <strong>section 14 of the Companies Act, 2013<\/strong> (conversion of public company into private company), along with <strong>e-form RD-1<\/strong>.<\/li><li>Secondly, due to the above notification, <strong>filing RD-1<\/strong> became compulsory for <strong>filing both applications u\/s 14 and u\/s 2(41)<\/strong> of the Companies Act, 2013. But stakeholders had several issues while filing RD-1.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/03\/Private-limited-company.jpg\" alt=\"Private Limited Company Registration\" class=\"wp-image-4036\"\/><\/a><\/figure><\/div>\n\n\n\n<p>Therefore, to ease the <strong>process of filing e-form RD-1<\/strong> so that the aforesaid applications won&#8217;t get hampered due to any reason, the Ministry introduced the required changes.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"540\" height=\"618\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/03\/MCA.png\" alt=\"e-from RD-1 \" class=\"wp-image-3946\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/03\/MCA.png 540w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/03\/MCA-262x300.png 262w\" sizes=\"(max-width: 540px) 100vw, 540px\" \/><\/figure>\n\n\n\n<p>For the complete notification, you can <a href=\"http:\/\/www.mca.gov.in\/Ministry\/pdf\/GeneralCircularNo3_11032019.pdf\">click here<\/a>.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/articles-of-association-aoa-and-its-importance\/\" target=\"_blank\" rel=\"noopener noreferrer\">Articles of Association (AOA) and Its Importance for the Company<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>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) [1] . As a result, MCA came up with the specified solution and issued a notification on 11th March 2019. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3948,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[690],"tags":[450,448,449,447],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3945"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=3945"}],"version-history":[{"count":13,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3945\/revisions"}],"predecessor-version":[{"id":11334,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3945\/revisions\/11334"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/3948"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=3945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=3945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=3945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}