Share application form

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Soumit Roy (Querist)
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10 November 2012 Can anybody provide me share application form in the condition of unsecured loan converted into Share Application.

Ajay Mishra

Ajay Mishra (Expert)
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10 November 2012 Hi

I think, it will not be as share application form.

It will be in the nature of loan agreement in which your terms and conditions will be conversion of loan in to shares on future date.

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Soumit Roy

Soumit Roy (Querist)
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10 November 2012 But Sir, it was unknown at the time of loan given.

Ajay Mishra

Ajay Mishra (Expert)
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10 November 2012 Hi

At the time of taking agreement for unsecured loan you will define the time period upto which loan will be converted into equity.

As you will be aware about section 41 of the Companies Act, 1956 dealing with member of the company.

As per this section to be a member there should be a written consent.

In your case you are taking loan from party and party are giving loan but not agree to become member after some period when the loan will be converted into equity.

At the time of conversion of loan you will again enter into an agreement foe converting loan into equity, if you are not mentioned this term in loan agreement.

Share application form for this matter is not sufficient.

Soumit Roy

Soumit Roy (Querist)
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10 November 2012 actually I want to know that, is it necessary to take share application form? If yes then what should be written on the form.bcoz there will not be any cheque number, drawn bank etc. which is necessary in the Form.

What should be fill in that colums?

Ajay Mishra

Ajay Mishra (Expert)
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10 November 2012 Hi

No it is not necessary to take share application form.

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