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PUBLICATIONS

Conversion from an existing Public company to a Private company

A public company may be converted to a private company at any given time of its life time. This is possible by issuing a shareholders’ resolution by which it will decide accordingly as to this conversion to private and it will alter its articles of association in such a way that it:

  • Restricts the right to transfer its shares; and
  • Restricts the number of its shareholders to fifty (excluding of its employees);

And

  • Prohibits the issuing of a prospectus inviting the public to subscribe for any shares or debentures of the company.

An application to the Registrar to change the name must also be filed in order to get rid of the word ‘public’ or ‘Plc’ from its name and once approved, the new name for the private company can be used.