(1)Any existing manufacturer, being a partnership firm, may make an application to the Central Government in the Ministry of Home Affairs with the recommendations of the State Government concerned for grant of permission to convert the firm into a private limited company and the Central Government may grant such permission provided that the Memorandum and Articles of Association of the newly incorporated Company contain that?(a)only the existing partners or family members are on the Board of Directors of the company;(b)restriction on the directors to transfer shares, assets or profits of the company to any outside person and on submission of an undertaking to the effect that the applicant company has complied with the relevant provisions of the Companies Act, 2013 (18 of 2013) in this regard.
