Issue of convertible debentures
Namitabh Kothari (9930992660)
(Querist) 16 August 2010
This query is : Resolved
Dear all,
I have a client who has just go a small funding from investors.
He will probably start with authorized capital of 1lakh or 2lakh or so.
He has to give 1.5% equity to a contractor on a vested basis of 2.5 years. But this 1.5% is to be off the post-debenture maturity value of the company. Not the starting 1 lakh.
The debentures mature after 1 year. When he has to issue shares to the convertible debenture holders.
So how do we go about legally making sure that the contractor gets 1.5% of the post-debenture-maturity value and not the current value?
What type of agreement / document would be required to be prepared to handle the above situation?
regards
Namitabh
namitabh.law@gmail.com
9930 992 660
Raj Kumar Makkad
(Expert) 31 January 2012
Commercial queries are discouraged in this particular section.
