Company Secretary
142 Points
Joined June 2009
Section 125 of the Companies Act, 1956 deals with the kinds of Charges which are required to be registered with Registrar of Companies and Companies are under obligation to file the charges and prescribed particulars of charge together with instrument, by which charge is created or evidenced, within thirty days after the date of its creation.
The Registrar of Companies is bound to register the charge under Section 132 of the Companies Act, 1956. The associate company as above has neither provided any security nor there is any instrument evidencing charge on any property relating to Corporate Guarantee.
Therefore, furnishing of mere Corporate Guarantee for another body corporate is not registerable, meaning thereby that the corporate guarantee cannot appear in the records maintained by the Registrar of Companies. While I am parting with the opinion, if the banker insist on filing form 8 by the associate companies on security basis, form 8 may be filed .
Filing of Form 8 regading Corporate guarantee is not mandatory on the part of Associate Companies but the amount of Corporate Guarantee shall be accounted for under Section 372 A (in case of Public Cos.)
CASE: associate companies need not file form 8