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Pledging of Shares

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 November 2010 Company "A" invested in company "B" and Company "B" invested in a Partnership firm "C". "C" has shares in Company "B". "C" has taken loan from "B" by giving its shares as security. Now "C" is in default.
My doubt goes this way:
1) Can a share holder pledge his shares against the loan issued to him by the company?
2) If yes, can the company forfeit the shares(Fully paid up)if the Shareholder is default?
3) If yes, can it reissue the shares to Company "A"?
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udit sharma

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udit sharma (Expert)
09 November 2010 In my opinion, answer to all of ur questions is yes!
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Querist : Anonymous

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Querist : Anonymous (Querist)
12 November 2010 Thanks! Can you please support your answer. I mean any reference of sections form respective act/acts.
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