What is the procedure to convert unsecured loan into equity share. Unsecured loan is from One of the Director of the Company. Simple Board Resolution of allotment towards unsecured loan is suficient or not ? Which Form is to be filed Form 2 or Form 3 ?
Menu
Procedure to convert unsecured loan into equity share
Replies (1)
Subject to provisions in your Articles, take share application form duly signed, pass Board resolution and file Form 2. In case of public co., follow Unlisted Public Companies (Preferential Allotment) Rules 2003.
Alternatively, preferred option is to exhange cheques to clear transactions separately (one for refund of loan with interest and another for share application money).
Recent Topics :
- Police Bandobost and GST Invoice
- Understanding where manual effort goes in audit wo
- Scanned purchase bills to Tally XML with GST check
- TDS applicability of foreign remittance to Oracle
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
Related Topics :
CAclubindia
