A proprietary limited company can convert to a public company by passing a special resolution of the shareholders so long as the conversion between the two company types are allowed under section 162 of the Corporations Act 2001. Section 162 states that:
A proprietary company limited by shares may convert to:
- An unlimited proprietary company;
- An unlimited public company; or
- A public company limited by shares.
An unlimited proprietary company may convert to:
- Proprietary company limited by shares
- Public company limited by shares
- Unlimited public company
In order to complete the conversion a special resolution must be passed; the appropriate Forms and documents must be lodged with ASIC and the relevant fee must be paid. The documents to be lodged are:
- A Form 205 - Notification of resolution;
- A Form 206 Application for change of company type; and
- A copy of the new company constitution.
