Conversion of Debentures into Equity Shares

[Anjali Bansal]

Dear All

 

Mine a private limited company. We have issued Debentures Compulsorily Convertible into Equity Shares on the expiry of 15 years from the date of allotment. Now, after the expiry of 2 years, we wish to convert them into Equity Shares.

 

Please suggest:

 

1. is it possible to convert the debentures into equity shares before their term;

2. What should be the procedure for the same.

 

Please treat this as very urgent.

 

Thanks and Regards

 

Anjali

[Anjali Bansal]

[sid]

In my view you may have to hold meeting of debenture holders to get approval on same as this will be variation from its terms of issue. Then you will have to take approval of shareholders under section 62 of CA 2013 as this section now applicable to private company as well.