WE have one holding company who has given loan to its wholly owned subsidiary in lieu of equipment transfer. Loan consist of advanced outstanding and interest component. it also consist of current account.
Now wholly owned subsidiary want to convert its whole amount in to equity shares.
kindly tell me procedure and compliance to be done for wholly owned subsidiary (Public company) and Holding company (Listed Company)if possible along with documents and checklist.
31 May 2011
If at the time of the loan if their any option is given in the agreement than it can be easily converted, otherwise it can be converted with the resolution of the Board or Member as per the requirement and also required to file e-form 2 for allotment within 30days of allotment.
CAclubindia
