January 27, 2021
Summary of the notification issued by MCA on 25/01/2021
MCA amends rules with respect to conversion of public company into private company under the Companies Act, 2013
Through this notification, MCA requires the Regional Director(RD) –
i. To reject the application for conversion within 30 days, recording reasons in writing, if the applicant doesn’t furnish required information within 15 days in eForm RD-GNL-5
ii. To record the consensus arrived during the hearing of objections, if any and pass an order recording the reasons for approval/rejection within 30 days from the date of hearing.
iii. May approve the conversion, if no consensus is received during hearing, provided the RD is satisfied having regard to all the circumstances of the case, that the conversion would not be against the interests of the company or is not being made with a view to contravene or to avoid complying with the provisions of the Act, with reasons to be recorded in writing
Further, the amendment has also dispensed with the deeming provision for automatic approval, where there is no order for approval or re-submission or rejection has been explicitly made by the RD within the stipulated period of thirty days
This notification is available for reference on our free to use website www.ca2013.com for your quick reference.