Coversion of Loan into Share Application Money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2011 Is it possible to convert a loan into Share application money by a pvt. ltd. company . What are consequences if it done so.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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02 June 2011 If you want to conver loan into share applicatiom money for the purpose of allotment of share, you can do so. You have to:

Pass Board resolution.
obtain a letter that the person want to convert his loan into share application and ready to take shares at the agreed price.