๐ฆ๐๐ง๐๐๐ซ๐ฌ๐ญ๐๐ง๐๐ข๐ง๐ ๐ญ๐ก๐ ๐๐ซ๐จ๐๐๐ฌ๐ฌ ๐จ๐ ๐๐จ๐๐ง ๐ญ๐จ ๐๐ก๐๐ซ๐ ๐๐จ๐ง๐ฏ๐๐ซ๐ฌ๐ข๐จ๐ง.๐ฆ
Navigating the financial intricacies of converting loans into shares can be crucial for optimizing a companyโs financial health. This process transforms debt into equity, providing benefits such as improved cash flow, reduced debt, and potential investor attraction.
๐Key Considerations:
-Loan Agreement: Ensure it permits conversion.
-Shareholder Approval: Typically required via special resolution.
-Fair Valuation: Accurate share pricing is critical.
๐๏ธSteps to Convert:
-Review loan agreement.
-Negotiate terms with the lender.
-Obtain board and shareholder approvals.
-Consult legal and tax professionals.
-Finalize and document the conversion.
