Sir,
Please help us for following topic
is it possible that in balance sheet reserves & surplus amount can convert to paid up capital to existing directors.
and what is the procedure and law applicable.
Thanks
axiom
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Conversion of equity
Replies (1)
Dude,
First be clear with your question.
As your question does not specify the type of Company (Private or Public), in general, the Reserves & Surplus of a Company mentioned in Balance Sheet cannot be coverted to Paid-up Capital.
But the money can be used to issue Bonus Shares to the existing Directors and the usual procedure has to be followed for allotment.
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