Loan taken by subsidiary co.
This query is : Resolved
07 July 2010
Hello,
Please help .
X Ltd is the 100% holding co. of Y Ltd. Y ltd. acquires a loan from bank for which X gives a guarantee by pledging Y's shares.
Does this call for creation of charge? If so, who shall file form 8?
Thanks in advance.
Please help .
X Ltd is the 100% holding co. of Y Ltd. Y ltd. acquires a loan from bank for which X gives a guarantee by pledging Y's shares.
Does this call for creation of charge? If so, who shall file form 8?
Thanks in advance.
07 July 2010
Hi,
First understand charge is required to be filed by the company u/s 134(1).
In your case there is no need to file any charge because you transaction is not falling u/s 125(4)(e) because in the pledge of shares ----original share certificate is handed over to the lender.
Pledge where property in possession is given away to the lender is outside the preview of section 125(4)(e).
Kindly check section 125(4).
Thanks
First understand charge is required to be filed by the company u/s 134(1).
In your case there is no need to file any charge because you transaction is not falling u/s 125(4)(e) because in the pledge of shares ----original share certificate is handed over to the lender.
Pledge where property in possession is given away to the lender is outside the preview of section 125(4)(e).
Kindly check section 125(4).
Thanks
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