Counsel
Ask an expert!
Legal, accounting and compliance advice from qualified professionals.
Loan agreement need not be filed with MGT-14. It is advisable not to use the funds till MGT-14 is approved. Typically MCA approves MGT-14 in 3-4 working days. It is advisable to have a loan agreement with your debtors. But a separate term sheet is not required. Registering a loan agreement is entirely up to the company and debtors. However, the loan a...
Wazzeer Professional Network
ProfessionalWhat is the Procedure to file MGT-14 for a convertible loan?
I am director in a private limited company planning to accept loan from shareholders of the company. We have to file a copy of special resolution passed at the extra ordinary general board meeting along with explanatory statement U/S 102 of the companies act, 2013. I have following questions: 1) Do we have to attach any other documents like loan agreement between the company and the shareholders along with the resolution in MGT-14 ? 2) Do we have to wait for MGT-14 to be approved before actually accepting the loan ? 3) How long does it take in general for MGT-14 approval ? 4) Do we need to have a separate term sheet along with loan agreement or the agreement itself should include all the terms ? 5) Do we need to register the loan agreement ?
-
Wazzeer Professional Network
ProfessionalLoan agreement need not be filed with MGT-14. It is advisable not to use the funds till MGT-14 is approved. Typically MCA approves MGT-14 in 3-4 working days. It is advisable to have a loan agreement with your debtors. But a separate term sheet is not required. Registering a loan agreement is entirely up to the company and debtors. However, the loan agreement should be on a stamp paper and should be notarized. Hope the loan is being raised from only Indian debtors only. Otherwise, you will have to follow RBI compliances on Debt funding from foreign sources.
To take this discussion forward to get this work done, all you have to do is ->"Get your Wazzeer"
over 3 years ago
View answer
What is the Procedure to file MGT-14 for a convertible loan?
I am director in a private limited company planning to accept loan from shareholders of the company. We have to file a copy of special resolution passed at the extra ordinary general board meeting along with explanatory statement U/S 102 of the companies act, 2013. I have following questions: 1) Do we have to attach any other documents like loan agreement between the company and the shareholders along with the resolution in MGT-14 ? 2) Do we have to wait for MGT-14 to be approved before actually accepting the loan ? 3) How long does it take in general for MGT-14 approval ? 4) Do we need to have a separate term sheet along with loan agreement or the agreement itself should include all the terms ? 5) Do we need to register the loan agreement ?
-
Wazzeer Professional Network
ProfessionalLoan agreement need not be filed with MGT-14. It is advisable not to use the funds till MGT-14 is approved. Typically MCA approves MGT-14 in 3-4 working days. It is advisable to have a loan agreement with your debtors. But a separate term sheet is not required. Registering a loan agreement is entirely up to the company and debtors. However, the loan agreement should be on a stamp paper and should be notarized. Hope the loan is being raised from only Indian debtors only. Otherwise, you will have to follow RBI compliances on Debt funding from foreign sources.
To take this discussion forward to get this work done, all you have to do is ->"Get your Wazzeer"
over 3 years ago
Looking to hire a professional from our handpicked community?
Explore our services, submit your request and let us do the rest for you.