Can an Independent director be eligible for sweat equity share if he has given value addition to the company?
Can a company issue a sweat equity share to an Independent director?
A company intends to convert its redeemable preference shares
into equity share capital. Can it do so under the provisions of the
Companies Act, 2013?
Dear Members !
Are the conditions of issue of sweat equity shares different for
start-up companies and other companies ?
What is the difference between ESOP and Sweat Equity share?Click here to view / answer Share it on
What is the difference between ESOP and Sweat Equity and which option will be more feasible for the Company ?Click here to view / answer Share it on
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 ??
What is the procedure of conversion of Loan into Equity share.
Kindly confirm what option do we select in purpose of Form SH-7 in case of conversion of CCPS into equity and do we file SH-7 before PAS-3 or the sequence doesn't matter?
Please share draft documents along with forms filed for the purpose of issue of Sweat equity shares.
Please guide the stamp duty and registration fee, if any, in the state of Madhya Pradesh on agreement for Conversion of Loan into Equity under Section 62(3) of the Companies Act and also guide whether Valuation Report will be required or not.
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..?
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?
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