Dear Professionals,

We have converted one partnership firm into the company on December 2021.
Before conversion, they have 2 lakh in the capital account and 50 lakh in the current account.
After conversion 2 lakh became share capital and Rs.50 Lakh treated as unsecured loan from director.

Can we convert above mentioned unsecured loan of 50 lakh (Previously current account) into share capital..?

Because;
In order to convert the loan into share capital, as per provisions of section 62(3) of the Companies Act, the company has taken loan on the terms that the loan will be converted into share capital and such option has been approved by special resolution before taking of loan then in such case subscribed capital can be increased.

It must be noted that it is at most important to pass the special resolution at the time of acceptance of the loan without passing the special resolution; the loan cannot be converted into share capital.

How can we convert the unsecured loan into share capital?

Please guide..