Private company to become public company in certain cases.

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....ating to the matters specified in clause (iii) of sub-section (1) of section 3 and the number of its members may be, or may at any time be reduced, below seven: Provided further that in computing the aforesaid percentage, account shall not be taken of any share in the private company held by a banking company if, but only if, the following conditions are satisfied in respect of such share, namely:      (a) that the share___      (i) forms part of the subject-matter of a trust,      (ii) has not been set apart for the benefit of any body corporate, and      (iii) is held by the banking company either as a trustee of that trust or in its own name on behalf of a trustee of that trust; or      (b) that the share      (i) forms part of the estate of a deceased person,      (ii) has not been bequeathed by the deceased person by his will to any body corporate, and      (iii) is held by the banking company either as an executor or adminis­trator of the deceased person or in its own name on behalf of an executor or admin....

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....ection (1) of section 3 and the number of its members may be, or may at any time be reduced, below seven.] [6][(1C) Where, after the commencement of the Companies (Amendment) Act, 1988, a private company accepts, after an invitation is made by an advertisement, or renews deposits from the public, other than its members, directors or their relatives, such private company shall, on and from the date on which such acceptance or renewal, as the case may be, is first made after such commencement, become a public company and thereupon all the provisions of this section shall apply thereto: Provided that even after the private company has so become a public company, its articles of association may include provisions relating to the matters specified in clause (iii) of sub-section (1) of section 3 and the number of its members may be or may at any time, be reduced below seven.] (2) Within three months from the date on which a private company becomes a public company by virtue of this section, the company shall inform the Registrar that it has become a public company as aforesaid, and thereupon the Registrar shall delete the word "Private" before the word "Limited" in the name of the com....

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....of [14][such amount as is referred to in sub-section (1A) or more], [15][     (d) that the private company did not accept or renew deposits from the public.] [16][(9) Every private company, having share capital, shall file with the Registrar along with the annual return a certificate signed by both the signatories of the return, stating that since the date of the annual general meeting with reference to which the last return was submitted, or in the case of a first return, since the date of the incorporation of the private company, it did not hold twenty-five per cent or more of the paid-up share capital of one or more public companies. [17][(10) Subject to the other provisions of this Act, any reference in this section to accepting, after an invitation is made by an advertisement, or renewing deposits from the public shall be construed as including a reference to accepting, after an invitation is made by an advertisement, or renewing deposits from any section of the public, and the provisions of section 67 shall, so far as may be, apply, as if the reference to invitation to the public to subscribe for shares or debentures occurring in that section, includes ....

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.... 507(E), dated 24 June, 1985. [10] Omitted by the Companies (Amendment) Act, 1988, section 7, w.e.f. 15-6-1988. Prior to the omission, sub-sections (6) and (7) read as under: "(6) Nothing in this section shall apply      (a) to a private company of which the entire paid-up share capital is held by another single private company or by one or more bodies corporate incorporated outside India; or      (aa) to a private company in which shares are held by one or more bodies corporate incorporated outside India, which or each of which, if incorporated in India, would be a private company within the meaning of this Act, if the Central Government, on an application made to it in this behalf by that private company, by order so directs; or      (b) to any other private company if, but only if, each of the following conditions is satisfied, namely:      (i) that the body corporate or each of the bodies corporate holding shares in the private company is itself a private company (herein-after in this section referred to as a share­holding company),      (ii) that no body corporate is ....