Conversation unsecured loan into equity

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Priyanka hirawat (Querist)
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14 May 2018 Hello Expert

Private company taken unsecured loan from director and relative of director by passing Board Resolution in Second Board Meeting .
Now company plan to convert such loan into equity.

can company eligible to pass special resolution in General Meeting in respect of above loan.

CA Ankit R Momaya

CA Ankit R Momaya (Expert)
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14 May 2018 Yes, the company can convert the same provided the person from whom loan was taken has given consent. Related forms have to be filed with ROC