Issue of Compulsorily Convertible Debentures

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Chartered Accountant
454 Points Posted on 30 September 2021

Should the Authorised Capital of the Company today include the number of equity shares that will be issued at the time of conversion?

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On 30 September 2021 at 20:27 Report
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This discussion addresses whether a company's authorised capital should include shares for the future conversion of Compulsorily Convertible Debentures (CCDs). While one viewpoint recommends including them now to avoid potential delays during conversion, another suggests it's not strictly necessary at this stage, with the option to increase authorised capital later if needed.

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Professional
1979 Points Posted on 07 October 2021
Yes ,It's Recommended ,else at the time of conversion , you have to first increase Authd capital and it may halt conversion exercise if shareholders go against the resolution..thnx
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On 07 October 2021 at 08:26
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Company Secretary and Compliance Officer
4386 Points Posted on 15 October 2021

Its not necessary to increase the authorized capital at this point, but later at the time of conversion if the authorized capital falls short then that time you can increase the same.

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On 15 October 2021 at 19:42

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