Issue of shares againt loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2011 Resp. Sir/s

Our company ha given loan of Rs. 15crores to other company for some project, the borrower company has used the money for its project purpose and after some years instead of paying back the loan it wants to issue/allot share for the loan amt. so. pls guide can it be done so & if yes under what section pls. clariy.

And also pls. provide me the resolution for the lender company giving their consent for accepting shares instead of loan amt

Thanks & Regards

CS Bijoy

CS Bijoy (Expert)
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19 September 2011 If the loan agreement does not mention any conversation option and article also not restricted than resolution is required to pass and form 3 is required to file with ROC.