28 October 2009
Actually I am a customer of private Limited company, an association of persons formed by 9 individual private limited companies and 4 individual persons-total 13. The private limited company have legally acquired constructed and selling flats in a housing complex. My housing loan bank is asking for individual copy of resolution which must be taken by each of these 9 pvt ltd companies in order to be a part of another association of persons My question is- 1. Is this absolutely necessary to have a resolution taken by the board for a private limited company to enter into another association of persons? 2. If they produce- association of persons certificate, memorandum of understanding. will these two be sufficient proof that the association of persons formed by those 9 pvt ltd companies and 4 individual persons are legally valid and viable?
28 October 2009
In case, the entity from whom you have obtained the flat is a Private Limited Company, then you may ask them to provide you a copy of their Memorandum and Articles of Association. It is very likely that this document will contain the fact of the entity being an association formed by these 13 persons.
In case, the entity from whom you have obtained the flat is an association of person, then you may ask them to provide you a copy of their Deed of Association. This document will contain the fact of the entity being an association formed by these 13 persons.
Obtaining board resolution from all the entities that have come together to form the new entity and that too for a housing loan provider does not seem to be feasible.
In my view, the documents that are mentioned above should be sufficient.
CAclubindia
