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ompany is in urgent need of funds & Director is introducing the fund out of his owned capital with an intention to convert it into equity at a later stage. Is any action required at the time of receiving the loan? Is there any minimum period for conversion of it ? What are the terms & Conditions to be decided? What are the steps to be taken at the time of allotment of share? Kindly give a note on this issue (which covers all aspects of the transaction) so that same can be guided to the company.

Fund raising

Posted By: Gurpreet kaur 10 year(s) ago

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Akansha

Company can raise funds from director as a loan provided the terms of loan shall contain such option of conversion and it shall be approved by way of a special resolution passed in the general meeting in pursuant to section 62(3) of the Act.

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