Section 366 of the Companies Act, 2013
Section 366 of the Companies Act, 2013 deals with the "Companies capable of being registered."
📝 Text Summary of Section 366:
Section 366 provides for registration of certain unregistered entities as companies under the Companies Act, 2013, including:
✅ Entities eligible to be registered:
Unregistered companies
Partnership firms
Limited liability partnerships (LLPs)
Co-operative societies
Societies
Other business entities (formed under any other law)
These can be registered as:
A company limited by shares,
A company limited by guarantee, or
An unlimited company under this Act.
🔍 Key Provisions:
Minimum Number of Members:
For a Partnership firm, the minimum number of partners required is 2, and the maximum can go up to 100 for conversion.
Conditions for Registration:
At least 75% of the members (in value) must consent to register the entity as a company.
The entity must prepare documents such as the memorandum, articles of association, list of members, and relevant declarations.
Effect of Registration:
Upon registration, the entity becomes a company under the Companies Act.
It continues as if it were originally incorporated under the Act, but with all liabilities and obligations intact.
Provision for Companies with Charitable Objects:
Such companies can also be registered under Section 8 of the Companies Act, 2013.
⚖️ Objective:
This section is aimed at facilitating the conversion of existing business structures into companies, ensuring better compliance, governance, and access to corporate benefits like limited liability, perpetual succession, etc.
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