Can the loan given by dir. and relatives/associates to a pub.co. be converted in to equtiy.?
the size is quite substantial - almost 3.5 times of present paid up equity.
if the answer is yes, request to suggest the procedure to go ahead.
ars (CS) (445 Points)
25 August 2010Can the loan given by dir. and relatives/associates to a pub.co. be converted in to equtiy.?
the size is quite substantial - almost 3.5 times of present paid up equity.
if the answer is yes, request to suggest the procedure to go ahead.
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 26 August 2010
Hi
the mode you choose is arrangemet which require high court approval. so kindly make applicantion to high court and then file petition.
ars
(CS)
(445 Points)
Replied 26 August 2010
isn't there any other way out. can the co. treat part of the amt. as application money for the preferential allotment and the rest for the actual allot. amt.- ie. can the pref. allot route be adopted.?.
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 26 August 2010
In the balanceshett already shown as loan by director and associates so it cant be ractified since the balance sheet already filed with no of statutory authorities. If same is not happen then you can treat as share application money if the same can be shown and earliar show as loan can be ractified.
CAclubindia
