Converting unsecured debt to equity or writing off

Kunal Bijlani (Head of Finance) (30 Points)

02 June 2014  

Hi,

I would like to please know (for a small private limited company):

1) Under Companies Act 2013 can unsecured debt (from a shareholder) be converted to equity?

2) Is there anyway for a loss making company that has not traded in the last financial year to write off unsecured debt from balance sheet (loan from shareholder)?

Thanks a lot in advance for your help/guidance on this.