Following is the procedure:
 

1) Get the request letter from the concerned Members/Directors who extended the loans to Company with a Request to convert the said Loans in to equity.

2) Get Share application forms filled up by the concerned members/Directors.

3) Hold a Board Meeting and allot shares for the said Loans which are now converted into Equity and file Form 2.

kindly Note that allotment on conversion should be in consideration for Cash and not otherwise.

4) Issue the Share certificates.

Other member pl. correct me if wrong.

Thanks & Regards

Deepika