BCL – L1 – SA – Q65 – Alternative Forms

Resolution needed to convert a private company to public.

Question

The private company needs conversion of a public company into which of the following?

A an ordinary resolution

B a specific and special resolution

C a specific and special resolution and union governments approval

D a specific and special resolution and company law board approval

Answer

Explanation:
The correct answer is C because converting a private company to a public company typically requires a special resolution (passed by a significant majority) and, in some jurisdictions, approval from a regulatory authority like the government. Options A and B are insufficient, and D refers to a less common requirement (company law board).

Tags: Company Law, Private to Public Conversion, Resolutions
Level: Level 1

Topic: Alternative forms and constitutions of business organisations

Uploader: Samuel Duah