Section 18: Conversion of companies already registered
This section allows a company to change its class by altering its memorandum and articles and registering the changes with the Registrar.
The section, clause by clause
What the section says
In plain terms
(1)A company of any class registered under this Act may convert itself as a company of other class under this Act by alteration of memorandum and articles of the company in accordance with the provisions of this Chapter.
A company of any class registered under this Act can change its class by altering its memorandum and articles in accordance with this Chapter.
(2)Where the conversion is required to be done under this section, the Registrar shall on an application made by the company, after satisfying himself that the provisions of this Chapter applicable for registration of companies have been complied with, close the former registration of the company and after registering the documents referred to in sub-section (1), issue a certificate of incorporation in the same manner as its first registration.
When a company applies to convert under this section, the Registrar will close its former registration and issue a new certificate of incorporation after verifying compliance with this Chapter and registering the necessary documents.
(3)The registration of a company under this section shall not affect any debts, liabilities, obligations or contracts incurred or entered into, by or on behalf of the company before conversion and such debts, liabilities, obligations and contracts may be enforced in the manner as if such registration had not been done.
Converting a company under this section does not affect its existing debts, liabilities, obligations, or contracts, which can still be enforced as if the conversion had not occurred.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.