Hi,
If a Pvt ltd company wants to issues shares in lieu of unsecured loans received from its directors, can anybody please let me know whether this amounts to issue of shares for consideration other than cash ? If yes what is the procedure to be followed.
Unsecured Loan can be converted into Share Capital. This can be done by passing Board Resolution. As far as question of E-Form is concerned only E-Form 2 Shall be filed. E-Form 3 is filled where a contract was made into between some person and company but not reduced into writing and that contract too relates to sales, services etc. and not to Loan!!
Read more at: /forum/conversion-of-unsecured-loan-into-equity-share-capital-191242.asp
Aggarwal Sarawagi and Co
New Delhi
CA
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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