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Q. > Please Help: Transfer Unsecured Loan to Share Capital
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207 views • Question added Jan 16, 2015 • Corporate Law • By Mohit Thareja , CA , Gurgaon


Dear All,

Following is the situation, please answer asap:-

Unsecured Loans from Directors/Shareholders-Rs 3 Cr
Share Capital- Rs 7 Lakhs

Now, the Director/Shareholder wants to transfer Rs 1 Cr from Unsecured Loan to Share Capital.

Basically he wants to capitalize its Loans portion and wants to build a stronger Balance Sheet.

Please advise whether Share capital can be issued from amount of Unsecured Loan?

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