A private company may, at any time, pass a special resolution to change its status from being a private company to being a public company.
Among many other benefits, converting a private company to a public company will free up the company’s ability to raise capital from the public. Within 30 days of passing the resolution to change a private company into a public company, a copy of special resolution, a copy of altered articles, together with a copy of ‘prospectus’ or a ‘statement in lieu of prospectus’ must be filed with the Registrar of Companies.
A public limited company is the only corporate form of organization which is allowed to raise funds from general public. Thus it enjoys better avenues for raising capital. It can issue debentures, secured as well as unsecured, accept deposits from the public, etc. Banking and financial institutions prefer to render large financial assistance to Public Limited Companies. Even a closely held Company can operate as a Public Company without diluting promoters’ stake.
Public Limited Companies, as compared to other business forms, enjoy better recognition in the market and bestows confidence in the stakeholders.
Many companies have approached VCS in the past to assist in converting companies from private to public and have had the opportunity to enjoy our excellent service. We are very proud because what may be a hassle to our clients is exactly what we do best.
To contact us please send us an email on info@vcsafrica.com and one of our consultant will be in touch with you to understand your needs.
