"Section 8 company can be converted into a company of any other kind." Explain the Provisions.

Section 8(4)(ii) of the Companies Act, 2013 provides that, a company registered under section 8 may convert itself into a company of any other kind only after complying with conditions as prescribed in the Rule 21 & 22 of the Companies (Incorporation) Rules, 2014. The company is required to pass a special resolution at a general meeting for approving such conversion. The explanatory statement annexed to the notice convening the general meeting shall set out in detail the reasons for opting for such conversion. A certified true copy of the special resolution along with a copy of the Notice convening the meeting including the explanatory statement shall be filed with the Registrar of Companies in Form No.MGT.14 along with the fee. The company shall file an application in Form No.INC.18 with the Regional Director with the fee along with a certified true copy of the special resolution and a copy of the Notice convening the meeting including the explanatory statement for approval for converting itself into a company of any other kind and the company shall also attach the proof of serving of the notice served to all the statutory authorities namely: The Chief Commissioner of Income Tax having jurisdiction over the company, Income Tax Officer who has jurisdiction over the company, The Charity Commissioner, The Chief Secretary of the State in which the registered office of the company is situated, Any organisation or Department of the Central Government or State Government or other authority under whose jurisdiction the company has been operating. Declaration shall be given by the Board of Directors to the effect that no part of property or income of the Company has been directly or indirectly transferred or paid by way of dividend or bonus or otherwise to persons who are or have been members of the company or to any one or more of them or to any persons claiming through any one or more of them. Where the company has obtained any special status, privilege, exemption, benefit or grant(s) from any authority, a "No Objection Certificate" must be obtained, if required and file with the Regional Director, along with the application. The company should have filed all its financial statements and Annual Returns, upto the financial year preceding the submission of the application to the Regional Director and all other returns required to be filed under the Companies Act, 2013 up to the date of submitting the application to the Regional Director. In case, an application is filed and 3 months have expired from the preceding date of Financial year to which financial statement has been filed, then, a statement of financial position duly certified by the Chartered Accountant up to the date of not preceding 30 days of filing the application needs to be attached. Along with the application, the Company shall also need to attach a Certificate from a Practicing CA/CS/CMA certifying that all the conditions relating to the conversion of Section 8 company as laid down in the Companies Act, 2013 has been duly complied with. A copy of the application with annexures as filed with the Regional Director shall also be filed with the Registrar. The company shall, within a week from the date of submitting the application to the Regional Director, publish a notice at its own expense, and a copy of the notice, as published, shall be sent forthwith to the Regional Director and the said notice shall be in Form No. INC.19 and shall be published- at least once in a vernacular newspaper in the principal vernacular language of the district in which the registered office of the company is situated, and having a wide circulation in that district, and at least once in English language in an English newspaper having a wide circulation in that district; and on the website of the company, if any, and as may be notified or directed by the Central Government. The company shall send a copy of the notice, simultaneously with its publication, together with a copy of the application and all attachments by registered post or hand delivery, to all the statutory authorities mentioned above and if any of these authorities wish to make any representation to Regional Director, it shall do so within sixty days of the receipt of the notice, after giving an opportunity to the Company. The Regional Director may require the applicant to furnish the approval or concurrence of any particular authority for grant of his approval for the conversion and he may also obtain the report from the Registrar. Upon satisfaction, the Regional Director shall issue an order approving the application of conversion of Section 8 company to any company of the other kind, subject to all prevailing terms and conditions as may be imposed in the facts and circumstances of each case including the following conditions, namely: the company shall not claim, with effect from the date its conversion, any special status, exemptions or privileges that it enjoyed by virtue of having been registered under the provisions of section 8 of the Companies Act, 2013; if the company had acquired any immovable property free of cost or at a concessional cost from any government or authority, it may be required to pay the difference between the cost at which it acquired such property and the market price of such property at the time of conversion either to the government or to the authority that provided the immovable property; any accumulated profit or unutilized income of the company brought forward from previous years shall be first utilized to settle all outstanding statutory dues, amount is due to lenders claims of creditors, suppliers, service providers and others including employees and lastly any loans advanced by the promoters or members or any other amounts due to them and the balance, if any, shall be transferred to the Investor Education and Protection Fund within 30 days of receiving the approval for conversion; Before imposing the conditions or rejecting the application, the company shall be given a reasonable opportunity of being heard by the Regional Director. On receipt of the approval of the Regional Director The company shall convene a general meeting of its members to pass a special resolution for amending its memorandum of association and articles of association as required under the Companies Act, 2013 consequent to the conversion of the section 8 company into a company of any other kind. The Company shall thereafter file with the Registrar: A certified copy of the approval of the Regional Director within thirty days from the date of receipt of the order in Form NO. INC.20 along with the fee; Amended memorandum of association and articles of association of the company A declaration by the directors that the conditions, if any imposed by the Regional Director have been fully complied with. On receipt of the documents as mentioned above, the Registrar shall register the documents and issue the fresh Certificate of Incorporation.