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 Topics :
- TDS return filing
- Need formats of FS as per Co act 2013 in soft copy
- Remittance to italy
- Invoice made but goods not sent
- How Do CA Firms Manage Client Document Collection
- How do CA firms manage pending client documents du
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
Related Topics :
CAclubindia
