A Public Company Of A Private Company

983 Words Jun 6th, 2016 4 Pages
(a) From a public company to a private company.
According to the CORPORATIONS ACT 2001 Section 162, 163 (and others)
The possibility to change a public company to a private is in regards to these features:
If the public company is limited by shares, it can become to unlimited proprietary company or a proprietary company limited by shares.
If the public company is unlimited, it can become to proprietary company limited by shares (within the last 3 years as a maximum time) or an unlimited proprietary company.If the public company is a public no liability company, it can become a proprietary company limited by shares.
As a public company according to the section 113, must to complete the requirements to become a proprietary company.
When the change officially occurs, the section 164 of the Corporations Act ASIC must be publish a notice in the Commonwealth Gazette that states explaining the intention to change the company registration. After one month, the change registration has to be notified and published in the Commonwealth Gazette. ( Australian Government, 2001) The main advantages to change the registration from a public company to a private company are:
The possibility to plans in long term, the public company is focused en quarterly results, when it occurs the yield is lower, instead the private company is able to pan the growing in a long term bringing a clear objective , in this way the investors and managers can evaluate and research to look the benefits.
As a…
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