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??
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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. :)
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