One of our company having application money on hand wants to convert it into Unsecured Loan. It is possible right?
Resolution of Board and consent of applicant is sufficient for the purpose??
Menu
Conversion of application money to unsecured loan
Replies (4)
No Ekta, in my view, it isa not possible....Howver, the company can refund the application money and re accept the same in the form of an unsecured loan.....but to convert the application mony directly into unsecured loan is not correct.....
Lets wait for others views....
No Share Application money can not be converted into unsecured Loan
You can search for a case law : Bharti Airtel Vs ACIT [ 11.3.14],
In new Companies Act 2013 , Share Application money should be alloted in prescribed time or to be refunded.
Ohk.. Got it.. Thank you Vandana and Rohan. :)
Recent Topics :
- LTCG on sale of Builder Buyer Agreement
- Rule 13(2)(h) and valuation of CCDs
- Leave encashment, New labour code, Management cadr
- GST clarification needed:
- TDS processed with short deduction default
- TDS on rent paid to RNOR Landlord. Can RNOR US tax
- PAN CANCELLATION OF A DISSOLVED PARTNERSHIP FIRM
- Transport agency accounting entry in purchase &
- REGARDING HSN CODE FOR WASHING JOB CHARGES
- Advance Tax Due Date 2026
Related Topics :
CAclubindia
