Conversion of Loan into Equity Section 62(3) of the Companies Act,2013

Last updated: 13 May 2020
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This document details the process and legal requirements for converting company loans into equity shares under Section 62(3) of the Companies Act, 2013. It explains how companies can reduce liabilities without cash outlay by issuing shares in lieu of loans, provided shareholder approval via a special resolution is obtained at the time the loan is taken. The guide outlines the necessary procedures, including board and shareholder meetings, filing forms MGT-14 and PAS-3, and addresses common queries regarding valuation and loan modification. This information is crucial for company directors, legal advisors, and finance professionals involved in corporate restructuring and fundraising.

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Submitted by · Posted 13 May 2020 · Other files by Divya Modani · Report
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