Conversion of unsecured loans into equity share capital
SAROJA (student) (72 Points)
24 January 2016SAROJA (student) (72 Points)
24 January 2016
CS Divesh Goyal
(Practicing Compnay Secretary)
(50535 Points)
Replied 25 January 2016
CONVERSION OF LOAN INTO EQUITY
GOYAL DIVESH & ASSOCIATES,
Practicing Company Secretary
QUESTION: CAN A COMPANY CONVERT LOANS INTO SHARE CAPITAL OF COMPANY UNDER COMPANIES ACT 2013 (EXCEPT LOAN TAKEN AND DEBENTURE ISSUED TO GOVERNMENT COMPANY).
Solution: Section 62 sub section 3 of Companies Act, 2013
As per The Section:
Observation:
Note:
Solu: Yes, he can do so. Because Special resolution was not required at that time
Solu: YES, he can do so. if at the time of raising of money he had passed Special Resolution and if company had passed special resolution at the time of receipt of money then he can convert such loan into capital of company.
Following things are required:
kanhaiya kumar agarwal
(Practising Chartered Accountant)
(72 Points)
Replied 17 March 2016
Mr. Divesh,
Please elaborate the process of conversion of loan into equity in case Loan is taken under Old Companies Act without entering into any agreement before the receipt of loan. Since, PAS-3 requires attachment of copy of such contract.
Ashish Sharma
(FINANCE)
(22 Points)
Replied 01 July 2016
Dear Mr. Kanhaiya,
I hope you must have gone through the process for conversion of loan into equity in case Loan is taken under Old Companies Act without entering into any agreement or with agreement wherein MGT 14 should not be applicable to file.
Kindly share the process if you have done it.
Thanks in advance.
Piyushkumar
(Practicing Company Secretary)
(2 Points)
Replied 01 May 2017
Can anyone Provide me format of Special Resolution for take loan with the condition to convert such loan into Shares in future at the time of accepting of Loan{Proviso of subsection 3 of Section 62} and format of Terms to the Loan for conversion into Capital in future.
Thank you.
Shivam Sharma
(Student)
(22 Points)
Replied 25 June 2018
Comapny had raised a loan in earlier act when there was no requirement to file MGT -14 and now company wants to convert this loan into equity, can it do so, if yes, whether is it mandatory to file MGT-14 now?
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 25 June 2018
Why Special Resolution is required?
reshma
(no)
(28 Points)
Replied 18 January 2019
PLEASE PROVIDE THE FORMAT OF RESOLUTION TO BE FILLED AT THE TIME OF ACCEPTANCE OF UNSECURED LOAN.