Applicability of sub‑section (6) of companies falling under sub‑sections (1A) and (1B) - Companies Law - Circular : No. 31/76

Circular : No. 31/76 [31/76 ‑ CL ‑ V], dated 1 ‑ 9 ‑ 1976. Subject:- Applicability of sub ‑ section (6) of companies falling under sub ‑ sections (1A) and (1B) Reference is invited to Department s Circular No. 1/76, dated 27‑1‑1976 under which it was clarified that a private company becoming a public company by virtue of the provisions of sub‑section (1A) and/or sub‑section (1B) of section 43A will not be eligible to avail of the exemption as envisaged under sub‑section (6) of section 43A. In this respect the Government have received from various quarters representations pointing out that the opinion contained in the circular requires reconsideration. Therefore, the matter has been carefully re‑examined and the Department is advised that on a plain reading of sub‑section (6) of section 43A, as it stands today, it cannot be held that the said sub‑section excludes from its ambit cases falling under sub‑section (1A) and/or sub-section (1B) of section 43A. Accordingly, the exemption under sub-section (6) of section 43A will continue to be available to companies coming within the scope of sub‑sections (1A) and (1B) and Department s Circular No. 1/76 is hereby withdrawn. Such of the companies which may have applied to the Registrar in pursuance of sub‑section (2) of this section and have got deleted the word Private before the word Limited in their names upon the register and have also got made necessary alterations in the certificate of incorporation issued to the company and to its memorandum of association are advised to apply to the Registrar for the restoration of the word Private and the cancellation of the consequent alterations made in the certificate of incorporation and the memorandum of association of the company.