Milind Shah (CS) (25 Points)
14 January 2015Can anyone provide me the information as regards to the issue of shares to the director's of the company by conversion of their loan to equity? what would be the procedure and the required compliance in this regards under Companies Act, 2013
Further I would like to know in the above case if the directors to whom the shares are alloted are the members of the company , the procedure will change and do I need to pass a special resolution ?
CS MOHIT SALUJA
(PRACTICING CS Jalandhar 9914558709)
(5155 Points)
Replied 15 January 2015
For alloting the shares to the whosoever the person, section 42 or section 62 as the case may be has to be followed.
For conversion of loan into equity a special resolution must have been passed by the company before obtainng the loan that the loan in future will be converted into the equity as er section 62(3).
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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