Sunil Kumar Singla

Section 62(3) - Nothing in section 62 shall apply to the increase of the subscribed capital of a company caused by the exercise of an option as a term attached to the debenture issued or loan raised by the Company to convert such debenture or loans into shares of the Company; Provided that the terms of issue of such debentures or loan containing such an option have been approved before the issued of such debentures or the raising of loan by a special resolution passed by the Company in general meeting. Threrefore, if the term sheet specify the terms to convert into equity, then the convertion be done without complying with the provisions of Section 62 and in case no specific terms for conversion in the term sheet, the company can convert it by complying with Section 62 read with Section 42.