Every company which is seeking registration under this Part shall,
a. ensure that secured creditors of the company, prior to its registration under this Part, have either consented to or have given their no objection to company's registration under this Part;
b. publish in a newspaper, advertisement one in English and one in vernacular language in such form as may be prescribed giving notice about registration under this Part, seeking objections and address them suitably;
c. file an affidavit, duly notarised, from all the members or partners to provide that in the event of registration under this Part, necessary documents or papers shall be submitted to the registering or other authority with which the company was earlier registered, for its dissolution as partnership firm, limited liability partnership, cooperative society, society or any other business entity, as the case may be.
d. comply with such other conditions as may be prescribed.
Legal Commentary & Landmark Judgments: Section 374
Section 374 of the Companies Act, 2013 prescribes mandatory statutory prerequisites for registration under Chapter XXI, including secured creditor consents, bilingual newspaper publication, member dissolution affidavits, and statutory dissolution of LLPs.
In Section 366 conversion filings, strictly adhere to the 21-day objection period following bilingual newspaper advertisements in Form URC-2 before submitting Form URC-1. Obtain written NOCs from every secured lender; non-submission of a single secured creditor NOC constitutes an incurably fatal defect in RoC processing.