Sidebottom Ltd is a private limited company that intends alters its article of association. Explain to the directors of the company, five conditions which the company must comply with when exercising its powers to alter the articles of association.

Procedure to be followed to convert an unlimited company into a limited company

• Under the companies Act, an unlimited company may be converted into a limited company
• This requires a special resolution of members in a general meeting
• In this regard, the company must go through a fresh registration process
• After the conversion, the registrar will ‘ issue a new certificate of incorporation to the company.