Pass a Special Resolution for Section 8 company conversion
To convert your Section 8 company, the directors or the appointed official must arrange for a Board of Meeting. The director or the appointee must notify the Board members regarding the purpose of the meeting as a special resolution, i.e., the Conversion of Section 8 company into the proposed business model. Post-meeting, the resolution, so agreed upon by the Board Members, must contain the following details:
Section 8 company Incorporation
The passed resolution must contain the Date of Incorporation of the Section 8 Company.
Altered Objects of MoA
The passed resolution must contain the altered principal objects of the to-be-converted Company in the Memorandum of Association.
Reason for Conversion
The passed resolution must contain why achieving the Company's objectives cannot be carried out in the current business structure of Section 8 company.
The passed resolution must contain the privileges as well as concessions that the Sec 8 company currently enjoys from various authorities.
The passed resolution must contain the details of the land and other immovable properties acquired by the Section 8 company. These properties are acquired at concessional rates from their market price.
Section 8 company Conversion Impact
The passed resolution must contain the details of the impact of the conversion on the members of the Sec 8 company.
Filing Section 8 company Conversion Application
The conversion applicant must file an online conversion application in the form INC-18 with the Regional Director of the Authority. Also, the application must contain a questionnaire which covers all the points mentioned above.
Section 8 company Conversion Advertisement
The conversion applicant must publish a notice in Form INC 19 in atleast two newspapers. In addition, the applicant must publish the advertisement within a week from the date of submitting an application to the Regional Director.
The applicant must send the conversion application along with all the attachments as well as the publication via the Registered Post or in-person delivery to the following entities:
Regulations by the Authority
The applicant must also observe the following regulations to the above-mentioned entities as accorded by the Authority:
Formalities of new Incorporation post-Conversion