Close Public Limited Company
A Dissolution Resolution must be adopted by 75% of the shareholders, post which an application should be sent to the RoC containing the necessary documentation;
This application is followed by liquidation, which often is the most complex step requiring careful oversight
Finally, the expunged from the records of the MCA, at which point it ceases to remain in existence.
Close Public Limited Company - An Overview
Since a company has its own separate existence, meeting regulatory compliances and existing apart from its directors and shareholders, it also has its own method of ceasing to exist, rather than an inoperative company simply ceasing to exist. A company whose shares may be traded freely amongst the public is referred to as a Public Limited Company, and it may be listed/unlisted on stock exchanges. It requires at least 3 directors for its operation. A Public Company may shut down if the Company needs to undergo liquidation in order to pay off creditors, or if the members of the Company wish to close it.
Why Close your Public Company?
Public Companies are generally closed for the following reasons -
- Only the director of an officially closed Public Company is no longer bound to the regulatory compliances required for the same;
- A closed Public Company no longer incurs any fines or penalty, and cannot cause a debarment of its director from moving forward and starting a new company or LLP;
- Closing is a simple procedure for inoperative Public Companys and a required step in order to extinguish any liabilities.
Documents Required for Close Public Limited Company
- Application for Striking off of the Public Company.
- Board Resolution approving the closure.
- Consent of Directors.
- Director’s Affidavit.
- Indemnity Bond.
- Statement of Assets and Liabilities.
- Form FTE (in case the FTE scheme is being applied under).
- Up to Date Form 8 & 11.
Frequently Asked Questions
Closure filings are necessary so that the MCA may update its records, and officially close the Public Company so that it is free from all legal compliances. Unless such filing occurs, the Public Company remains functional and is obligated to meet regulatory compliances, the default of which would incur liabilities to its partners.
The law requires at least 75% of the total shareholders to approve such an application
Close Public Limited Company Registration
Close Public Limited Company
रु 5999
/ Plus Govt Fees