Transfer of unsecured loan to share capital (Corporate Law)

This query is : Resolved

RPARPA

( Author )
14 June 2012

IN PVT LTD CO. IS IT POSSIBLE TO TRANSFER UNSECURED LOAN OF SHAREHOLDER'S BALANCE TO HIS SHARE CAPITAL ACCOUNT BY INCREASING AUTHIRISED SHARE CAPITAL??

Ajay Mishra

( Expert )
14 June 2012

Hi

Yes, you can do so by executing a share subscription agreement with such lender and company.

For becoming member of the company it must be an written consent of member as per section 41 of the Companies Act, 1956.

Regards