In case some of the creditors approch a Public Limited Company to issue equity shares or debentures to them against their due libilities, then can the company issue such shares/debentures? what are the provisions to be followed?
To my knowledge following are to be complied with:
(1) Board Approval
(2) special resolution under section 81(1A) of Co. Act 56
But Section 391 will not apply as the creditor get the shares for a value equal to their due (its not a compromise/arrangement).
My main query in this is, as only some of the creditor approched, whether the consent of all the creditors will be required.
Please provide your suggestions.
CAclubindia
