Please Help: Transfer Unsecured Loan to Share Capital

Posted Date : 16-Jan-2015 , 10:25:54 am | Posted By Mohit Thareja

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?

Category : Corporate Law | Answers : 0 | Comments : 0 | Hits : 192