L1B to H1B cos status but L1B expires in August.

[sagar77.shah]

Currently I am on 3rd year of L1b visa which is due for renewal in August 2016. My company is applying for L1B extension and also applying H1B CoS for April 2016 cycle with assumption thatmy L1B extension will go thru .

Incase if my L1B extension application is rejected then what will happen to my H1B CoS request? will it also get rejected?

my company says they can't file H1B Consular process as it illegal. is it True.