Can we convert Cooperative Housing Society in to Private Limited Company

[Swati Kankariya]

Hello Learned members

Can we convert Co-operative Housing Society into Private Limited Company? Reference section 366 of Companies Act.Early reply will be highly appreciated 

Swati Runwal

Practicing Company Secretary

Office No 306/306,Gangadham Shatrunjay Link Road, Kondhwa Bk  Pune 411048

Cell : 9403583829.

Email – csswat...@gmail.com

 

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[Ashutosh Shukla]

Hi,

Yes, it can be done. Here is an extract from the 57th Report of the Standing Committee on Finance on which I base my answer: 

" New Clauses 366 read with 374

Enabling provisions for allowing conversion of various entities (like societies, cooperative societies, firms and LLPs) into companies. 

Under the existing Act, mainly partnership firms are being allowed to be converted into companies subject to certain safeguards and the satisfaction of the Registrar of Companies. Keeping in view the fact that LLP Act, 2008 has been in force since 2009 and various other entities like societies, cooperative societies may also have need commercial freedom for conversion into corporate form, the enabling provisions (on the lines of provisions in the existing Act) have been proposed for conversion of such entities into companies as well, subject to adequate safeguards." 

Thanks and Regards,

CS Ashutosh Shukla