Conversion of Loans into Equity
This query is : Resolved
Mitali Agarwal
(Querist)
11 October 2010
Dear Experts,
I would like to confirm the procedure of conversion of unsecured loan amt. into equity share capital of a public ltd. unlisted co.
The points to be kept in mind are as follows:
A- Provisions of Section 81 and 75 are applicable.
B- AOA is silent but provides that the right to call of shares shall be given with consent of members.
So, the procedure is:
1- Pass Special Resolution in GM and File Form 23 & 2.
Pls confirm me whether the above points are correct?
I would like to confirm the procedure of conversion of unsecured loan amt. into equity share capital of a public ltd. unlisted co.
The points to be kept in mind are as follows:
A- Provisions of Section 81 and 75 are applicable.
B- AOA is silent but provides that the right to call of shares shall be given with consent of members.
So, the procedure is:
1- Pass Special Resolution in GM and File Form 23 & 2.
Pls confirm me whether the above points are correct?
CS Mitesh Mehta
(Expert)
12 October 2010
A special resolution u/s 81 of the Act, be required to be passed in GM.
No need that AOA should have a clause. Compliance of 81 (1A) is sufficient.
While filling form 2 , the allotment be shown as shares allotted in cash
No need that AOA should have a clause. Compliance of 81 (1A) is sufficient.
While filling form 2 , the allotment be shown as shares allotted in cash
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