Modification of charge or not ?

Dear friends,

A Private Limited company has a Term Loan from a bank, which is secured by a Personal Guarantee of the Directors. If one of the Directors resigns, in his place another person is appointed as Director and this incoming Director consents to take up the Personal Guarantee so foregone by the relieving Director. All formalities with the Bank are finished.

Now my Question is ... Does this interchange of Personal Guarantee constitute a Modification of Charge ? Should Form 8 be filed with the MCA for this purpose ....

Thanks ........

 

 

Replies (2)

A charge need to be register when security/mortgage created on company's property or undertaking,, but there is not so,, there is security is personal gurantee of directors.....

Yes Mr.Yogesh, thanks for the reply ..... There is only an interchange of Personal Guarantee from the resigining Director to the incoming Director. No change in the security ... So there is NO nee to file Form 8 .......
 

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