This article has been written by CA Bhuvnesh Goyal. This article provides a detailed analysis and understanding of provisions and laws related to “Unlimited Company to Provide for Reserve Share Capital on Conversion into Limited Company”
Section 65 of the Companies Act, 2013 provides for registration of an unlimited company as a limited company under the Act by increasing the nominal amount of its shares simultaneously, providing that the increased capital cannot be called up except at the time of winding up. Alternatively, the company can provide that a certain part of its uncalled share capital shall not be called up except at the time of winding up.