Allotment of shares using Unsecured Loan

    Posted By : Shiriti / Published on : 16-Apr-2018 01:58 PM / View : 90 / Comment : 2
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    Dear Members, Please guide with reference to above subject. In a private limited company a director has contributed loan to company as unsecured loan without any terms or condition. Now the company wants to allot shares using the unsecured loan. Is it possible to allot shares using unsecured loan. If yes please let me know the procedure. Q. curtsy: Ramesh CS
    Read more on : loan unsecured using shares allotment

    • Yes RIGHT , As per my view also 

      PRE REQUIREMENT:-

      The loan agreement should contain such clause.

      The company is required to pass SR at General meeting before obtaining such loan and such clause to issue aginst such loan should be approved by SR.

      Further, one case Law is there to resolve this issue .

      Can you please share that case law if you have !

      19-04-2018 / 01:15:48 PM
      Reply
    • Read proviso caluse of section 62 (3) of CA 2013.

      PRE REQUIREMENT:-

      The loan agreement should contain such clause.

      The company is required to pass SR at General meeting before obtaining such loan and such clause to issue aginst such loan should be approved by SR.

      (you can get the stamp paper and execute the agreement ** pass SR at back date)

       

      REST YOU CAN FOLLOW THE PROCEDURE TO ISSUE SHARE UNDER PRIVATE PLACEMENT

      Hope it helps ;)

      19-04-2018 / 01:16:11 PM
      Reply



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