How to convert unsecured loan in to equity shares?

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If any private company has taken unsecured loan of Rs.15 crores before 3 years than how the company can convert loan into equity shares now? Please prescribe process.
Replies (12)

FIRST CHECK LOAN AGREEMENT..IF IT IS ALLOWED OR NOT..

Loan was taken from directors and their relatives. No such loan agreement was prepared

SO PREPARE ONE ..

O BACK DATED BASIS

N INSERT A CLAUSE THEREIN FOR SUCH CONVERSION

THEN FOLLOW THE PROCEDURE AS PER THE ACT

I HAVE DONE THIS THING LAST WEEK ONLY.

 

I have already increased authorised capital for this. Can you please give me soft copy of such conversion?

I HAVE THE AGREEMENT AND RESOLUTIONS PREPARED..FILING IS LEFT OF SOME FORMS..

MAIL ID?

My E mail id is kushangthakkar @ gmail.com. Thanks for the help.

revert when u get

got the mail. Thanks

Is there any threshold limit of the unsecured loans to be converted into equity shares? As i believe there was notification related to directors not allowed to give loans..

Dear madam,Please send me the resolutions to be prepared for conversion of unsecured loans to equity shares.Loan agreement allows for such conversion.vasudha1991.kk @ gmail.com

Following things are required:

1.Special Resolution at the time of raising of Loan

2.File MGT-14 with ROC for Special Resolution.

3.Pass a Board Resolution at the time of conversion of same into Share Capital.

4.File form MGT-14 for issue of shares

5.File form PAS-3 for allotment of shares.

 

Regards,

Jay

 

mail id please


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