Repayment of loan by service

This discussion clarifies whether a company can repay a loan by providing services instead of cash, as per the Company Act 2013. Generally, repaying a loan via services is permissible if outlined in the original loan agreement and doesn't significantly alter the repayment terms. While a board resolution is typically needed for loan repayment decisions, issuing equity in lieu of a loan requires specific shareholder resolutions. Simple service-based repayment, if agreed, usually doesn't necessitate a new resolution beyond the initial loan approval.