GENERAL KNOWLEDGE

Detailed explanation-1: -Section 61(1)(c) of the Companies Act 2013 provides that a limited company having a share capital, if authorized by its articles may convert any of its fully paid shares into stock, and reconvert stock into fully paid up shares of any denomination. Only fully paid shares can be converted into stock.

Detailed explanation-2: -To pass a resolution in the meeting of shareholders: A limited liability company having share capital may, if so authorised by its articles, convert fully paid-up shares into stock and reconvert that stock into fully paid-up shares of any denomination by passing a resolution in its general meeting.

Detailed explanation-3: -In Section 61 of the Companies Act, 2013, a company can only convert its shares that have been fully paid up into stocks. That means only the portion of its shares that can be accounted for as regards total payments can be converted.

Detailed explanation-4: -Definition of Stock A public company limited by shares can convert its fully paid-up shares into stock.

Detailed explanation-5: -Shares can be converted into stock when fully paid and authorized by articles of association.