Zomato converts into a public company from private limited Companyby Estartup India Grow Business With Us
As Zomato prepares up to get placed on the exchanges in the coming months, the firm undertook a corporate restructuring to convert itself from a private limited company to a public company. Also, Zomato passed a special resolution on April 5 to take this move, amending the Memorandum of Association (MoA) and renaming the company as Zomato Limited from April 09, 2021. In this article, we will cover the latest update regarding Zomato converts into a public company from a private limited Company.
Learn about Pvt Ltd and Public Limited Company?
A Private Limited Company is a company that is privately held for small enterprises. The liability of the members of a Private Limited Company is restricted to the number of shares respectively held by them. Shares of Pvt Ltd cannot be openly traded. The minimum number of members required to start a private company is two.
A public limited company is a company registered on a recognized stock exchange and the stocks are traded publicly. The least number of members required to start a public company is seven.
Zomato converts into a public company
Zomato’s public listing is around the corner and the company is involved in the pre-IPO processes. To that effect, the company’s holding entity has been converted from a private company to a public limited company.
Further, Zomato passed a special resolution on April 5 to take this measure, amending the Memorandum of Association (MoA) and renaming the company as Zomato Limited from April 09, 2021.
Conversion Process of Private Limited into Public Ltd Company
Under the Preceding Companies Act, 1956, there are various points for Conversion of Private Company into Public Company which are as follows:
1 Board Meeting:
Issue notice following the provisions of section 173(3) of the Companies Act, 2013, for convening a meeting of the Board of Directors. This notice has to be published to their particular registered addresses at least 7 days before the date on which the Board Meeting is to be held.
2 Issue of EGM Notice:
Issue Notice of the Extra-ordinary General meeting (EGM) to each member, Directors and the Auditors of the company following the provisions of Section 101 of the Companies Act, 2013.
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Created on Apr 20th 2021 07:59. Viewed 267 times.