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Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary?
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Flora and fauna limited was registered as a public company there are 2...
Conversion of Flora and Fauna Limited from Public to Private Company
Introduction
Flora and Fauna Limited was registered as a public company with 230 members. The board of directors proposes to convert it into a private company. This response will provide advice on whether a reduction in the number of members is necessary.
Conversion to a Private Company
A public company can be converted into a private company by passing a special resolution in a general meeting. The special resolution must be approved by a 75% majority of the members present and voting. Once the resolution is passed, the company must file the necessary documents with the Registrar of Companies.
Reduction in the Number of Members
A private company can have a maximum of 200 members, excluding employees and ex-employees who are also members. Therefore, Flora and Fauna Limited will have to reduce the number of members before it can be converted into a private company.
Procedure for Reduction in the Number of Members
The reduction in the number of members can be achieved by:
1. Voluntary transfer of shares by the members to non-members.
2. Cancellation of shares held by the company.
3. Purchase of shares by the company.
Conclusion
In conclusion, Flora and Fauna Limited can be converted into a private company by passing a special resolution and filing the necessary documents. However, a reduction in the number of members is necessary as a private company can have a maximum of 200 members. The reduction in the number of members can be achieved through voluntary transfer of shares, cancellation of shares or purchase of shares by the company.
Introduction
Flora and Fauna Limited was registered as a public company with 230 members. The board of directors proposes to convert it into a private company. This response will provide advice on whether a reduction in the number of members is necessary.
Conversion to a Private Company
A public company can be converted into a private company by passing a special resolution in a general meeting. The special resolution must be approved by a 75% majority of the members present and voting. Once the resolution is passed, the company must file the necessary documents with the Registrar of Companies.
Reduction in the Number of Members
A private company can have a maximum of 200 members, excluding employees and ex-employees who are also members. Therefore, Flora and Fauna Limited will have to reduce the number of members before it can be converted into a private company.
Procedure for Reduction in the Number of Members
The reduction in the number of members can be achieved by:
1. Voluntary transfer of shares by the members to non-members.
2. Cancellation of shares held by the company.
3. Purchase of shares by the company.
Conclusion
In conclusion, Flora and Fauna Limited can be converted into a private company by passing a special resolution and filing the necessary documents. However, a reduction in the number of members is necessary as a private company can have a maximum of 200 members. The reduction in the number of members can be achieved through voluntary transfer of shares, cancellation of shares or purchase of shares by the company.
Community Answer
Flora and fauna limited was registered as a public company there are 2...
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Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary?
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Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary?.
Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Flora and fauna limited was registered as a public company there are 230 members in the company the board of directors of the company propose to convert it into a private company also advise whether reduction in the number of member is necessary?.
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