Reconversion into private company in the event of shareholding getting reduced to less than 25 per cent of paid‑up share capital and average annual turnover falling below Rs. 1 crore - Companies Law - Letter : No. 32/21/75‑CL‑III,

Letter : No. 32/21/75 ‑ CL ‑ III, dated 20 ‑ 10 ‑ 1975. Subject:- Reconversion into private company in the event of shareholding getting reduced to less than 25 per cent of paid ‑ up share capital and average annual turnover falling below Rs. 1 crore The provisions of section 43A(1A) and (1B) are mandatory and the private company shall become a public company according to the said provisions and the company should comply with the provisions of sub‑section (2) of section 43A within the stipulated period of 3 months. On the private company s disposing of the shares of the public company so as to reduce the percentage of its holding to less than 25 per cent of the paid‑up share capital of the public company or its average annual turnover falling below rupees one crore, the company can convert itself into a private company by complying with the provisions of section 43A(4).