Concept of “public interest” on the basis of which turnover is made a factor for converting private company into public company in terms of sub‑section (1A)

Companies Act 1974: 'Public Interest' Now Includes Creditors, Consumers, Employees; Turnover Key in Section 43A Amendments.

The concept of 'public interest' in companies has been traditionally limited to the shareholdings of public institutions or the government, leading to the view that private or closely-held companies do not involve public interest. This outdated perspective has been expanded to include the interests of creditors, consumers, employees, and the state. Consequently, the Companies (Amendment) Act, 1974, incorporates 'turnover' as a criterion for converting a private company into a public company under section 43A. This broader understanding should be considered when assessing public interest in company-related matters.