Conversion of Properietorship into Private Limited Company

Aagvi (Practicing Company Secretary )   (24 Points)

10 May 2011  

Hello,

I want to want to convert a Properietorship into a Private Limited Company. Sole properitor has taken loans from outsider.

Hence what will happen to the outsider's loan if we convert it to private limited company.

As, according to section 58A, Private Company cannot take loans from outsiders. Please give me a way out as my clients needs it urgently.