<h1>Company conversion eligibility expanded so small business entities may register as companies, with small groups limited to private company status.</h1> The proposal reduces the membership threshold for entities formed under other laws to convert into companies, allowing entities with fewer members to register while providing that entities below the traditional seven member threshold must convert to a private company; the Committee recommended amending the statute accordingly. The Committee also recommended amendments to the Rules to permit registration of partnership firms governed by the Partnership Act as companies, noting this can be accomplished by rule change rather than by altering the Act.