We have submitted Form 20A with MCA and it is approved through STP. My doubt is whether that completes the process for commencement of business or do we receive any certificate for commencement of business post that?
your response will be much appreciated, thank you in advance
Please guide to us on conversion of Unsecured Loan in to Equity by a "Private Limited Company".
As we read the Section 62 (3) of the Companies Act regarding Conversion of Loan in to Equity, it says that a "Special Board Resolution" must be passed before taking loan containing that this loan will be converted in to Equity.
We are already having Unsecured Loans in our books from Directors, and no such resolution regarding conversion
of Loan in to Equity has been passed.
Now how can we convert this loan in to Equity?
Is there any remedy for such loan for conversion in to Equity in the Companies Act?
Hypothetically i draw my situation so that its easy for you to give more clarity on the matter:
there is one partnership firm ABC Firm, at the time of conversion of the same ABC Firm to ABC Pvt Ltd, in the books of partnership firm there is o/s unsecured loan, which is prohibited as per companies act, 2013.
Companies can not take uncured loan from third party...
What are consequence for the same.
Thanks in advance