Umesh (Director) (42 Points)
26 February 2013Dear all,
Do we need to create a charge with ROC to take an OD from Co-operative bank by giving the property as a security of one of the directors?
Since company being held closely by a family.
1. Provided resolution
2. Closely held company
Awaiting for a favorable reply at the earliest
Regards,
Umesh
Mitali Agarwal
(Company Secretary)
(638 Points)
Replied 02 March 2013
As per Section 124 of CA, 1956, the charge is reqd. to be reigstered only when it is created on the assets of the company and not on the assets of the director.
Since the company does not own the property being mortaged/given as security, the charge is not reqd. to be registered since it is not a charge on the assets of the Company.
CAclubindia
