Resolution

While giving the collateral Security you will be making one board resolution, in that you don't add the excluded directors name. You neednot have to provide any resolution were director is not providing anything. The resolution is required only on the instances where the Directors will give their guarantee, securiy and others.

This is my view. Kindly rectify if I am wrong :)

Hi,

At the time of creating a charge on 2005, 3 directors gave collateral security. Now, one of the director wants to relieve from such risk. shall we give resolution to bank and also file form 8 for modification.

Pls confirm.

Regards

C.J. Sreedevi

Yes, You tell the same to the Bank. The Bank will modify the Terms & Conditions of the Charge accordingly.

and on the Modified Documents you file form 8 for the Charge Modification.

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