Pledge of Shares

Hi Harsih Sir,

Such pledging is not allowed. As private compnay, section 295 is not applicable and you can avail loan directly form the Compnay without pledging or providing any security.

Regards

Jaideep Pandya

Thanks for the reply Jaideep, please check the below link, a member said there is a chance, but he has not replied after that.  Please check and let me know,

/experts/pledging-of-shares-610570.asp

As per section 77 of the Compnaies Act, No company limited by shares, and no company, shall have power to buy its own shares, unless the consequent reduction of capital is effected.

Accordingly, Pledging of shares is not allowed with the same compnay.

Regards

Jaideep Pandya

Thanks for the clarification Jaideep