16 March 2010
Hi Dear, FIrst tell , in which year company has received unsecured loan. If recd in the same year then why you call it unsecured loan, you can treat it share application money recd and now you convert it into share capitla. If company has recd unsecured loan in last fy , and shown in balance sheet as unsecured loan, then it is better to return first unsecured loan , then recd share application from this company.
Guest
Guest
(Expert)
23 June 2012
There is no bar for conversion of loan into share capital. You are required to enter into agreement with lender for conversion of loan into capital.
Call a Board meeting and pass a resolution and file Form-2 and form 3 within 30 days.