Whether form 8 is to be filed with roc for purchase of a car

This query is : Resolved

Ritu Agarwal (Querist)
Follow

04 January 2013 Dear All,

I am working in a public limited company. We purchased a car on loan now I am unable to understand whether charge is to be created under the companies act s-125 and form 8 is to be filed.

I was being informed by others that only board resolution is enough but no charge is to be created and our company won't be defaulter but no vaid reason was there.

Please help me and answer me what to do.

Thanks & Regards,

Ritu Agarwal
C.S., LL.B.

Ajay Mishra

Ajay Mishra (Expert)
Follow

04 January 2013 Hi

Yes, charge is created on vehicle and it should be filed with ROC. As per Section 125 (4)(e) you will register the Charge.

Ajay Mishra

Ajay Mishra (Expert)
Follow

04 January 2013 Board Resolution:

AVAILANING THE AUTO LOAN FACILITY FROM HDFC BANK LIMITED

The Chairperson reported that arrangements were proposed with HDFC Bank Ltd., whereby the Company would be granted a loan facility of Rs. .....,000/- (Rupees ..... Thousand Only) for the purpose of meeting the costs of acquiring of one (Number) Motor vehicle/vehicles………………………………………………………………………………………………….. (make and model of vehicle) on the terms set out in the printed loan documents of the Bank for such loan which was tabled at the meeting.

It was term of the arrangements that the Company would charge by way of Hypothecation of its above vehicle/vehicles now owned/to be acquired with such loan to the Bank as set out in the Composite Agreement for Auto-Loan and Guarantee and the Power of Attorney both included in the above loan documents which was tabled in the meeting.

“IT WAS RESOLVED as follows:

1) That this loan of Rs. ...../- (Rupees .... Only), to be repayable in equated monthly installments not exceeding 36 months be arranged by the Company with the Bank on the terms set out in the above loan documents now produced to the meeting and approved.

2) That the Company do charge by way of Hypothecation in favour of the Bank as continuing security of its vehicle/vehicles mentioned above to secure repayment of the monies, obligations and liabilities covenanted to be paid in the composite Agreement for Auto Loan and Guarantee included in the above loan documents which was produced at the meeting.

3) That the said Agreement and the Power of Attorney (included in the above loan documents) in favour of the Bank and produced at the meeting be and same are hereby approved.

4.) Mr....., Authorised Signatory of the Company is instructed and authorized to sign and execute, (a) Composite Agreement for Auto Loan and Guarantee, (b) Power of Attorney, (c) Promissory Note and, (d) Any other document that may be required by the Bank on behalf of the Company and deliver the same to the Bank and to arrange for the filing with the Registrar of Companies (if required in law) of all necessary forms consequent upon the business deal with at this meeting.

5) The Company undertakes to submit copy of Post Delivery Documents (Invoice, RC Book & Insurance) to the Bank within 30 days of disbursement of the loan.

6) Mr. ......, are Authourised to sign post dated cheques.

IT IS HEREBY CERTIFIED that the above is a true extract from the Minutes of the Meeting of the Board of Directors of the Company and that the resolution set out above were duly passed in accordance with and comply with the Memorandum and Articles of Association and the Provisions of the appropriate Statutes, Rules and Regulations relating to the management and affairs of the Company and that neither such resolutions nor drawing under above facility will infringe any restrictions on borrowing, changing or otherwise affecting the Company or the Board.”

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now