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THE FOURTH SCHEDULE
(See section 57)
C ONVERSION FROM UNLISTED PUBLIC COMPANY INTO LIMITED LIABILITY PARTNERSHIP
Interpretation.
1. ( 1) In this Schedule, unless the context otherwise requires,-
( a) "company" means an unlisted public company;
( b) "convert", in relation to a company converting into a limited liability partnership, means a transfer of the property, assets, interests, rights, privileges, liabilities, obligations and the undertaking of the company to the limited liability partnership in accordance with the provisions of this Schedule;
( c) "listed company" means a listed company as defined in the Securities Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 issued by the Securities and Exchange Board of India under section 11 of the Securities and Exchange Board of India Act, 1992;
( d) "unlisted public company" means a company which is not a listed company.
Conversion of company into a limited liability partnership.
2. ( 1) A company may convert into a limited liability partnership by complying with the requirements as to the conversion set out in this Schedule.
( 2) Upon such conversion, the company, its shareholders, the limited liability partnership into which the company has converted and the partners of that limited liability partnership shall be bound by the provisions of this Schedule that are applicable to them.
Eligibility for conversion.
3. A company may apply to convert into a limited liability partnership in accordance with the provisions of this Schedule if and only if-
( a) there is no security interest in its assets subsisting or in force at the time of application; and
( b) the partners of the limited liability partnership to which it converts comprise all the shareholders of the company and no one else.
Statements to be filed.
4. A company may apply to convert into a limited liability partnership by filing with the Registrar-
( a) a statement by all its shareholders in such form and manner to be accompanied by such fee as the Central Government may prescribe containing the following particulars, namely:-
( i) the name and registration number of the company;
( ii) the date on which the company was incorporated; and
( b) incorporation document and statement referred to in section 11.
Registration of conversion.
5. On receiving the documents referred to in paragraph 4, the Registrar shall, subject to the provisions of this Act, and the rules made thereunder, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act: Provided that the limited liability partnership shall, within fifteen days of the date of registration, inform the concerned Registrar of Companies with which it was registered under the provisions of the Companies Act, 1956 about the conversion and of the particulars of the limited liability partnership in such form and manner as the Central Government may prescribe.
Registrar may refuse to register.
6. ( 1) Nothing in this Schedule shall be construed as to require the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act : Provided that an appeal may be made before the Tribunal in case of refusal of registration by the Registrar.
( 2) The Registrar may, in any particular case, require the documents referred to in paragraph 4 to be verified in such manner, as he considers fit.
Effect of registration.
7. On and from the date of registration specified in the certificate of registration issued under paragraph 5-
( a) there shall be a limited liability partnership by the name specified in the certificate of registration registered under this Act;
( b) all tangible (movable or immovable) and intangible property vested in the company, all assets, interests, rights, privileges, liabilities, obligations relating to the company and the whole of the undertaking of the company shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed; and
( c) the company shall be deemed to be dissolved and removed from the records of the Registrar of Companies.
Registration in relation to property.
8. If any property to which clause ( b) of paragraph 7 applies is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such form and manner as the authority may determine.
Pending proceedings.
9. All proceedings by or against the company which are pending in any Court or Tribunal or before an authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership.
Continuance of conviction, ruling, order or judgment.
10. Any conviction, ruling, order or judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced by or against the limited liability partnership.
Existing agreements.
11. Every agreement to which the company was a party immediately before the date of registration, whether or not of such nature that the rights and liabilities thereunder could be assigned, shall have effect as from that date as if -
( a) the limited liability partnership were a party to such an agreement instead of the company; and
( b) for any reference to the company, there were substituted in respect of anything to be done on or after the date of registration a reference to the limited liability partnership.
Existing contracts, etc.
12. All deeds, contracts, schemes, bonds, agreements, applications, instruments and arrangements subsisting immediately before the date of registration relating to the company or to which the company is a party shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the company.
Continuance of employment.
13. Every contract of employment to which paragraph 11 or paragraph 12 applies shall continue in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the company.
Existing appointment, authority or power.
14. ( 1) Every appointment of the company in any role or capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed.
( 2) Any authority or power conferred on the company which is in force immediately before the date of registration shall take effect and operate from that date as if it were conferred on the limited liability partnership.
Application of paragraphs 7 to 14.
15. The provisions of paragraphs 7 to 14 (both inclusive) shall apply to any approval, permit or licence issued to the company under any other Act which is in force immediately before the date of registration of the limited liability partnership, subject to the provisions of such other Act under which such approval, permit or licence has been issued.
Notice ofconversion in correspondence.
16. ( 1) The limited liability partnership shall ensure that for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following, namely:-
( a) a statement that it was, as from the date of registration, converted from a company into a limited liability partnership; and
( b) the name and registration number of the company from which it was converted.
( 2) Any limited liability partnership which contravenes the provisions of sub-paragraph
( 1) shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees and with a further fine which shall not be less than fifty rupees but which may extend to five hundred rupees for every day after the first day after which the default continues. |