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    Conversion of Loan in to Equity || Valuation Report is Required

    Posted By : SARIKA / Published on : 13-Apr-2022 01:34 PM / View : 772 / Comment : 1

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    Dear Members,

    For Conversion of loan in to equity, since company is not able to repay the loan to directors.

    Please let me know whether a Valuation report is required ??
    Read more on : report required valuation equity loan conversion

    • Dear Member,

      Such company may issue share under Section 62(1)(c) of the Companies Act 2013 

      (1) Where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered—

      (c) to any persons, if it is authorised by a special resolution, whether or not those persons include the persons referred to in clause (a) or clause (b), either for cash or for a consideration other than cash, if the price of such shares is determined by the valuation report

      As in this case since the shares will be issued for a consideration other than cash, Valuation report from the valuer will be required.

      20-04-2022 / 06:11:45 AM
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