Close public Limited Company
Close Public Limited Company can be expedited if the partners are guided through the complex steps.
Introduction
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.
Broadly, the dissolution of a Public Company occurs in three stages:
- 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.
Filing a closing application with the Registrar is required as only after the MCA’s records are updated is a Company free from all legal compliances and officially closed. Requirements for closing a public Company are tedious procedural steps, so leave the work of figuring them out to our experts by signing up for our Public Company Closure service today, so that you can focus on life ahead of your earlier Public Company!
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.
Click here to read more about “Close Limited liability Partnership”.
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.
For Your Assistance-
- Upon signing up for our Public Company Closing service, our business experts review the activities of your company, and determine the documents required for the commencing the winding up;
- After successfully going through a consultation, our team shall prepare an advisory helping you with the necessary steps and draft the necessary paperwork.
- Once the required documentation is compiled, our legal team would file the same with the Ministry of Corporate Affairs.
