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HomeCA InteraccountingStock Conversion › Stock conversion under Sec 61 requires:

Stock conversion under Sec 61 requires:

ASpecial resolution + Tribunal approval
BOrdinary resolution if authorised by Articles, applicable only to fully paid shares
CSEBI approval
DBoard resolution + NFRA review
Answer & Solution
Correct answer: B. Ordinary resolution if authorised by Articles, applicable only to fully paid shares
1. Step 1: Per Sec 61, a company can convert its fully-paid shares to stock (and vice versa) by ordinary resolution if authorised by Articles. 2. Step 2: Conversion applies only to fully-paid shares. 3. Step 3: Hence (B). _Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_
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