A private company (A) has taken loan from another private company (B), now the company (A) wants to issue equity shares in repayment of loan?
What is the procedure for that?
Mamta Batra (CS) (376 Points)
10 August 2009A private company (A) has taken loan from another private company (B), now the company (A) wants to issue equity shares in repayment of loan?
What is the procedure for that?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 17 August 2009
It is better to repay the loan by cheque as provided in Sec.269T of IT Act. However, still if you desire to allot shares, follow normal procedure for application & allotment.
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