Sir, Can a Private Ltd. Co, converts its loans (held for more than 1 year) into equity shares? What is procedure for same.
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Conversion of Loans into Equity shares in case of Pvt.Ltd.co
Replies (4)
I have seen your query only today.There is no bar for conversion of loan into share capital.You are required to obtain a reuest letter from the lender of loan.call a Board meeting and pass a resolution and file Form-2.In case there is a Shareholders Agreement or some other restriction, you are to comply with the same.
Regards,
S.K.JAIN
sunil K. jain & associates,,
Mobile;9810104162
thanks sir
Whether it will attract Sec 269T of IT Act
269T is not applicabel since their is no repayment of loan and it since conversion of loan to capital
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