Menu
Share issue in exchange of directors loan
can a company issue equity share capital in exchange of loan taken from directors ??
Replies (4)
No a company can not convert loan into share capital.
first the company has to return loan to directors and after that he accept the amount from directors in a share application bank account then u can issue share to a director.
is there any section regarding the same ?
you can find it in section 42 of the Companies Act, 2013
nope cannot convert it's against the interest of members bound by moa and AOA
Recent Threads
- My client purchases Rs. 3 crores and his turnover
- Regarding CA foundation Exemption (Direct Entry Sc
- CFSS Scheme
- Transfer of ITC from individual to LLP
- Query of Goodwill
- Remuneration to Partners
- Request For Dhirajlal Rambhia
- Tds deduction queery
- Check ITR1 on income tax Form ITR1 Instead of 1 ho
- Form 121 requirement
Related Threads
CAclubindia
