A company registered in any of the status can be converted to another status. sometimes a change is necessary to drive a desired result, and this happens often in the life of a company. A company as a going concern can desire to meet a new goal, carry out new projects or change from its present status in order to cut costs.
A conversion of company status or re registration is the appropriate status in corporate practice, directors and share holders meet to discuss the way forward of a company, and one of the discussions might be to change a company and its type, its objectives, its share capital ,its management and et.al.
How to effectively convert or re register a company in Nigeria,present company and allied matters Act 2020,allows for the company to change and be re registered from Private company to a public company,from a public company to a private company, from a private limited company to an unlimited company, from a public limited company to an unlimited company.
A private company whether limited or unlimited may be re registered as a public company limited by shares .
CONDITIONS TO MEET BEFORE CONVERTING A PRIVATE COMPANY TO A PUBLIC COMPANY
The company directors must pass an application to the commission after passing a special resolution for the re-registration.
The company shall pass a special resolution altering the memorandum and articles of association of the company.
The company directors shall effect the necessary change in the memorandum of associations which states the company is a public/private company.
The directors shall remove any restriction of power not exercisable by the company under old status.
The directors of the company shall alter the company share capital where necessary.
The directors of the company shall alter and upgrade the companies net assets.