Amended and updated notes on section 65 of Companies Act 2013. Detail discussion on provisions and rules related to unlimited company to provide for reserve share capital on conversion into limited company.
Chapter IV (Sections 43–72) of the Companies Act, 2013 (CA 2013) deals with the provisions related to share capital and debentures. Section 65 of CA 2013 provides for unlimited company to provide for reserve share capital on conversion into limited company.
Recently, we have discussed in detail section 64 (Notice to be given to Registrar for alteration of share capital) of CA 2013. Today, we learn the provisions of section 65 of Companies Act 2013 read with the Companies (Share Capital and Debentures) Rules, 2014.
Section 65 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O.2754(E) issued dated 12.09.2013. This notification was come into force from 12th September, 2013 i.e. the commencement date of section 65 is 12-9-2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | IV |
| Chapter Name | Share Capital and Debentures |
| Section No. | 65 |
| Section Name | Unlimited company to provide for reserve share capital on conversion into limited company |
| Monthly Updated Edition | Company Law PDF |
Section 65 of Companies Act 2013: Unlimited company to provide for reserve share capital on conversion into limited company
Section 65 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
An unlimited company having a share capital may, by a resolution for registration as a limited company under this Act, do either or both of the following things, namely—
- (a) increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the company being wound up;
- (b) provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event and for the purposes of the company being wound up.