Kushang Thakkar (Practising) (138 Points)
20 April 2016
Jatin Bajaj
(CS)
(2930 Points)
Replied 21 April 2016
Yes, According to section 62(3), of Companies Act 2013, A Company can convert Loan into equity. Provided before aprooval of loan Company shall file special resolution in a general meeting and file Form mgt- 14 within 30 days of special Resolution. And after aprooval of Loan, Company shall hold board meeting and pass board resolution for conversion of loan into equity and further Company shall file PAS 3 for allotment of shares within 30 days of resolution and also further issue share certificates.
And as per section 62(4), where loan has been taken by a Company from the government and government think that it is for the public interest, it shall allow the conversion of Loan into equity subject to terms and conditions stated in the Agreement.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 21 April 2016
| Originally posted by : Jatin Bajaj | ||
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Yes, According to section 62(3), of Companies Act 2013, A Company can convert Loan into equity. Provided before aprooval of loan Company shall file special resolution in a general meeting and file Form mgt- 14 within 30 days of special Resolution. And after aprooval of Loan, Company shall hold board meeting and pass board resolution for conversion of loan into equity and further Company shall file PAS 3 for allotment of shares within 30 days of resolution and also further issue share certificates. And as per section 62(4), where loan has been taken by a Company from the government and government think that it is for the public interest, it shall allow the conversion of Loan into equity subject to terms and conditions stated in the Agreement. |
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AGree with the learned member.
Kushang Thakkar
(Practising)
(138 Points)
Replied 21 April 2016
AT THE TIME OF TAKING LOAN WHETHER THE COMPANY IS REQUIRED TO FILE MGT-14? IF COMPANY HAS TAKEN LOAN IN FY-2015-16 AND NOT INTIMATE ROC AT THAT TIME HOW IT CAN CONVERT LOAN INTO EQUITY?
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 21 April 2016
Although there is no link between the two events and you may easily complete the filing regarding allotment of shares. This is a default of section 179 and form MGT 14 should have been filed.
However, in case of private company section 179 is exempted by way of notification dated 5 june, 2015.
Jatin Bajaj
(CS)
(2930 Points)
Replied 22 April 2016
Yes, According to Section 179(3) (g), Every Public Company is required to File MGT 14, who has borrowed the money . IF MGT 14 IS NOT FILED, SURELY IT IS THE DEFAULT, AND FIRSTLY FOR the GOOD CORPORATE PRACTICES ROC SHOULD BE INFORMED IN FORM MGT 14. AND FILING MGT-14 IS EXEMPT FOR PRIVATE LIMITED COMPANY BUT THERE IS NO LINK BETWEEN TWO EVENT
COMPLETELY AGREE WITH MR.ANKUR
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 22 April 2016
Thank you Mr. Jatin....
Kushang Thakkar
(Practising)
(138 Points)
Replied 23 April 2016
Thank you Jatin Sir and Ankur Sir for this very useful information.
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