Your client Vivek wants to form a private company with a share capital of ₹50,000. Examining the relevant provisions of the Companies Act, 2013, advise Vivek on the following issues with proper justification: Whether Viv

Yes. Section 18 read with rule 7 of the Companies (Incorporation) Rules, 2014 provides that a private company other than a company registered under section 8 of the Act having paid up share capital of fifty lakhs rupees or less and average annual turnover during the relevant period is two crore rupees or less may convert itself into One Person Company by passing a special resolution in the general meeting. Before passing such resolution, the company shall obtain No objection in writing from members and creditors.