for conversion of unsecured loan into equity

[ankit vageriya]

dear all friends,,\

its a very urgent issue,

kindly consider it ,.

our company want to convert its unsecured loan into equity shares, loan are from its associate company 

i want to know the following remarks.

1 what are its procedure

2. what are the requirement regarding this conversion 

3. the cause of this conversion is due to draft rehabilitation sceme.

what are the perfect step is to be taken for this conversion

please reply soon

i will thankful to u if u contect me for this issue on my no.so that i can tell u whole matter

thanks

ankit vageriya

7405072030

[mann vishwakarma]

Dear Ankit,

The following are the procedure:

1) Get the request letter from the concerned Members/Directors who extended the loans to Company with a Request to convert the said Loans in to equity.

2) Get Share application forms filled up by the concerned members.

 3) Hold a Board Meeting and allot shares for the said Loans which are
now converted into Equity and file Form 2.

kindly Note the allotment on conversion is Consideration for Cash and
NOT CONSIDERATION OTHER THAN CASH.

4) Also get the declaration from the Said Directors with the back dated
(may be on the date of Loan given by the said Director) saying that
the said loan is from his own source and not from borrowed source.
This is a good practice.

5) Issue the Share certificates.

 

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[ankit vageriya]

kindly advise me that is there any time limit for the whole matter.

loan amount period is since 10 year so can any will fill back dated declaration? 

one more question 

for repayment of loan our company want to de rating our share decrece to 50%

result of this are as under

promoter shareholding will be 78.99%

and public sharing will less than 21 %

so it is voilation of law relating to SEBI rules what can we do ?

we filed a application to BIFR for this ..

what is further process

and as a CS what are our obligation? 

thanks 

ankit vageriya

7405072030

[Jayashree Chandrasekaran]

---------- Forwarded message ----------
From: Jayashree Chandrasekaran <jayak...@gmail.com>
Date: Sat, 16 Jul 2011 14:01:14 +0530
Subject: Re: [CSMysore] for conversion of unsecured loan into equity
To: Icsm...@googlegroups.com

If the loan is being converted into equity due to BIFR order then i
feel that you can inform the exchanges about this and then i think
they will ask for a time frame for dilution and reduction of promoter
holdings...pls talk to the Exchange...
Jayashree

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--
C.JAYASHREE
PARTNER
S.GANESH&ASSOCIATES
CHENNAI
98840 17120

--
C.JAYASHREE
PARTNER
S.GANESH&ASSOCIATES
CHENNAI
98840 17120

[mann vishwakarma]

then i also having same opinion as suggested by Jayashree..

[ankit vageriya]

thanks a lot 

for your kindly openion.

ankit vageriya

7405072030