Conversion of loan into capital

549 views 1 replies

Can a Pvt Company issue shares to the company who is related party against loan taken from such company. And what will be formalities? Can this shares be issued at pemium?

Replies (1)
No, you can not issue shares against the loan amount. First refund the amount of loan to the related party. And then take the same amount as share application money from it and issue the shares.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register