Call a board meeting after giving not less than 7 days notice to every director of the company as per section 173(3) of the 2013 act to consider the terms and conditions of the debentures or loans giving option for conversion into shares. The number of debenture holders who have exercised the option by passing necessary resolutions.
Owning rate to the company financial position, the terms of the loans or the period of issue of the debentures , the rate of interest payable on them.
Remember that a public financial institution or a scheduled bank shall not convert all or any part of such debentures or loans unless. The company that has issued the debentures or increased the loan has defaulted in the redemption/repayment of, or payment of interest on, such loans or debentures.
If your company is registered then it should not changed and its optionally convertible debt instruments into equity shares unless the holders of such convertible debt instruments have forward their positive approval to the issuer.
Remember that the above provision should not apply if such redemption is in terms of the disclosures made in the offer document.
Where the option to convert has been exercised, call a board meeting after giving notice to all the directors of the company.
Register the return of allocation with the ROC within 30 days of such assignment, then paying the requisite fees mentioned in the Companies (Registration Offices and Fees) Rules, 2014.
Please keep in mind the following :
(a) If default is made in complying with the same requirement of filing, every officer of the company who is in default will be punishable with fine up to Rs.1000.
(b) Share certificates to be issued on conversion of debentures are as far as possible, in marketable lots and, in respect of the balance which is in odd lots, in denominations.
If your company has completed a buy-back of its shares or other specified securities under section 68. It can make further issue of the same kind of shares containing allotment of further shares under clause (c) of sub-section (1) of section 62 of the 2013 act or other identified securities within a term of six months in the discharge of subsisting obligations.
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