The Board Resolution For Conversion Of Loan Into Equity is a crucial corporate document used in Indian business practice when a company decides to convert its debt obligations into equity shares. This approach is commonly utilized for debt restructuring, improving the company's debt-to-equity ratio, or when a lender wishes to take an equity position in the company. The resolution must comply with the Companies Act, 2013, SEBI regulations (for listed companies), and other applicable Indian laws. It typically includes detailed information about the loan being converted, conversion terms, share valuation methodology, and necessary regulatory compliance statements. This document is particularly important in scenarios of financial restructuring, strategic investments, or when strengthening the company's balance sheet by reducing debt burden. The resolution serves as the primary authority for company officials to proceed with the conversion process and is a key reference document for regulatory filings and corporate records.

1. Title and Date: Specifies the type of resolution and date of the board meeting

2. Attendance and Quorum: Lists directors present and confirms meeting quorum requirements are met

3. Background: Details of the existing loan agreement, reason for conversion, and benefits to the company

4. Definitions: Key terms used in the resolution including loan agreement details, conversion terms, and relevant regulations

5. Main Resolution: Formal board approval for conversion of loan into equity shares

6. Conversion Terms: Specific details of conversion including number of shares, conversion price, and basis of valuation

7. Compliance Statement: Confirmation of compliance with relevant laws and regulations

8. Authorization: Empowering specific officers to execute necessary documents and take required actions

9. Certification: Company Secretary's certification of the resolution