WE HAVE A PVT LIMITED COMPANY WHICH RECEIVED CERTAN AMOUNT OF DONATIONS FROM SEVERAL PERSONS . THESE AMOUNTS ARE NOT TO BE REFUNDED.SOME OF THEM WERE RECEIVED BEFORE THE INTRODUCTION OF THE COMPANIES ACT 2013.NOW WE WANT TOCONVERT THEM IN TO EQUITY SHARES . WILL IT BE POSSIBLE? CAN WE CONVERT THEM IN TO SHARE APLLICATION MONEY AND LATER ON ALLOT THE SAHRES?I KNOW THAT SHARE APPLICATION MONEY RECEIVED SHOULD BE KEPT IN A SEPERATE BANK ACCOUNT AND THE ALLOTTMENT HAS TO BE MADE WITHIN 60 DAYS ASPER THE NEW COMPANIES ACT 2013. IF NOT ALLOTEED IT HAS TO BE REFUNDED WITHIN 15 DAYS.OTHER WISE IT WILL BE TREATED AS DEPOSITS. IS THERE ANY WAY OUT OF THIS . PLEASE ADVISE.
2 Replies
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 30 October 2016
Whether amount was raised from shareholders or directors?
Loan can be converted into equity provided company has passed a special resolution approving the terms of loan before taking loan
jayadevan
(Auditor)
(62 Points)
Replied 31 October 2016
DEAR SIR,
IN MY QUERY I WRONGLY MENTIONED IT AS A PVT LT D COMPANY. ACTUALLLY IT IS A PUBLIC LTD COMPANY.THE LOANS WERE TAKEN FORM PUBLIC AS WELL AS SHARE HOLDERS. NO FORMALITIES WERE COMPLETED. SOME OF THE LOANS WERE GIVEN AS DONATIONS WHICH ARE NOT TO BE GIVEN BACK.THE COMPANY DID NOT SHOW THE LOAN ARE INCOME . THEY CARRIED FORWARD IT.THRERE ARE NOT TERMS AND CONDITIONS ATTACHED TO THE LOANS.
JAYADEVAN
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