abhivandita agrawal (22) (24 Points)
28 September 2016Their is a company which has been in loss for financial year 2014-15 and has taken a loan from a bank. however, bank in order to recover its debt it is converting its loan into equity...please let me know the pricing policy. company is a listed comapny but from last 30 days trading has been restricted by stock exchange. And also can such company issue prferential allotment.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 29 September 2016
You have to refer legal provisions under which loan is being converted into equity by the Bank. It may be over-riding provisions of Companies Act 2013.
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