top of page
Search

Convertible Note – Cheat Sheet !


Planning for fundraising and considering a Convertible Note? Here is a cheat sheet for you:

  1. Check if Convertible Note is the right instrument for you. Click Here to do a quick check!

  2. Well, if you are convinced that Convertible Note is the right instrument for fundraising for your startup, continue reading:

  3. Register with Startup India from DPIT.  Read more here

  4. Draft a Convertible Note Agreement. Purchase LexStart’s Convertible Note Primer to get a template. Purchase Now

  5. Draft a Convertible Note certificate.

  6. If the Articles of Association do not allow the Board to borrow money, amend the Articles of Association to give the Board the power to borrow by passing board and shareholders resolution.

  7. Draft a board resolution for approving Convertible Note.

  8. Draft a shareholders’ resolution for approving Convertible Note.

  9. Convene a Board Meeting for approving issuance of Convertible Note.

  10. Convene a Shareholders’ Meeting for approving issuance of Convertible Note.

  11. Stamp the Convertible Note Agreement.

  12. Procure signature of all Parties concerned on the Convertible Note Agreement.

  13. Upon receipt of investment amount, issue Convertible Note Certificate, duly stamped and executed.

  14. File Form MGT-14 within 30 days of Shareholders’ Meeting.

  15. File Form DPT-3 by 30th June of every year.

52 views0 comments

Recent Posts

See All

Ministry of Electronics and Information Technology (“MeitY”) was appointed as the nodal ministry for matters pertaining to online gaming vide notification dated 23 December 2022. MeitY vide notificati

To increase customer loyalty, e-commerce entities award reward points to their customers, which may later be redeemed by the customers on their platform. Reward points may be awarded based on a calcul

As law is constantly evolving to reflect the changing times, legislators are unable to foresee every problem that might arise and pass laws to address all its facets. One such legal limbo is the sale

bottom of page