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Issue of Compulsorily Convertible Debentures

NISHA AGARWAL (Chartered Accountant) (454 Points)

30 September 2021

Should the Authorised Capital of the Company today include the number of equity shares that will be issued at the time of conversion?

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2 Replies

Chirag (Professional) (1979 Points)
Replied 07 October 2021

Yes ,It's Recommended ,else at the time of conversion , you have to first increase Authd capital and it may halt conversion exercise if shareholders go against the resolution..thnx

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Neha Rajan Redekar (Company Secretary and Compliance Officer) (4386 Points)
Replied 15 October 2021

Its not necessary to increase the authorized capital at this point, but later at the time of conversion if the authorized capital falls short then that time you can increase the same.