section 293(1)(a) & 372A

Dear Members,

I hav a doubt regarding the wordings of the resolution u/s 293(1)(a) in teh follwing case

There is a limited Company ABC which is taking loan and the property which is getting charged against the loan is of XYZ Pvt Ltd.

Now shareholders approval is required for the above but in the general wordings of resolution is not fulsiiling teh requirement.

has anyone come accross the situation like that where in the reslution of 293(1)(a) few lines can be added where the authority to the board of XYZ Pvt Ltd is given for bowrrowing the particular amount or to give its property to ABC Ltd for the creation of charge for teh laon taken by ABC or any reference u.s 372A can be made in the resolution of Section 293(1)(a) .

N Form 8 will be filed by XYZ Pvt ltd

Hi Mayuri,

Here ABC limited has to request XYZ pvt ltd for securing their assets, It will not be a authorisation.

For requesting Xyz Pvt Ltd...u can use the following wordings...with suitable modification...

FURTHER RESOLVED THAT the Company do request ABC Limited to secure charge in favour of ...Bank, as security for the sanction of ...loan of ` /- (Rupees only) granted by the said Bank to the Company.

FURTHER RESOLVED THAT for the security given to the ...Bank , it is hereby confirmed that the company has not paid any consideration to the ABC limited for giving security in favor of ...Bank nor does it propose to pay remuneration/ fee in future, in relation to this.

ASSUMING TRANSACTION IS AS ALLOWED UNDER COMPANIES ACT, 1956 AND RULES THEREUNDER.

Regards

Jaideep Pandya