Seek advise on the below scenario for common collateral issue:
- 2 Pvt Ltd, companies namely- M.Company A and Company B
- Company A and Company B have both common directors. 5 Directors each.
- No shareholding of company A in company B and vice versa. No other LLP or company invested in company A.
- Company A wants to give corporate security to company B.
- Paid up capital of company A is Rs 25 lakhs.
Current scenario:
- Now both companies wants to avail cash Credit limit from with us and property is common to both loans.
- Property is in the name of company A.
seek advise is it possible as per company act.
CAclubindia
