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vaibhav   14 November 2016

Rent agreement

Hi,

I own one commercial property in city of Indore and want to give the same on Rent. My proposed Tenant (director) is the registered company under Companies Act.

My query is should i enter into agreement with my tenant as in his individual capacity or enter the agreement with company and get it signed by directors.

Regards,

Vaibhav

 



Learning

 8 Replies

Zoheb Khatri (Practicing in Mumbai ZohebKhatri@gmail.com)     15 November 2016

Better enter as an agreement with Individual capacity as well as Company with all director.

 

Regadds,

 

Zoheb Khatri

Ms.Usha Kapoor (CEO)     15 November 2016

You enter into rent agreemernt with company and signed by direcotors which would serve both the purposes if in inependent capacity for their prsonal default youcan sue them only for  arrears of rent whereas If it is a company if they commit any fraud piercing the veil of  a company to look at its legal personlity you can sue the directors and you cna sue the company also whih is of greater security.If you appreciae this answer please convey my forum thanks y clcking thanks.

ANUP KUMAR (AVP-LEGAL)     15 November 2016

The property is required by the Company and therefore the Rent Agreement should be entered with Company only which can be executed by any Director authorised to enter into Rent Agreement (obtain board resolution for Director's authority). In case of default by the company you can file winding up petition against the company which cannot be filed against the Director who are individual.

 

1 Like

adv.bharat @ PUNE (Lawyer)     15 November 2016

Vaibhav u need to make rent agreement with individual person and not company.

IF any default then that person is answerable to you and not that company.

will u appreciate this answer by clicking thumb on my LCI profile?

vaibhav   16 November 2016

Thanks to everyone.

Dr J C Vashista (Advocate)     17 November 2016

It is the company which would be your tenant, if you (both parties) do agree.

Accordingly the company shall have to pass a resolution authorising one of its someone (Official/Director) to execute the Lease and Licence agreement and get it registered on behalf of Company, which is a fictitious entity/person, in law.

surendra prakash agrawal (advocate)     17 November 2016

Just like banks u obtain power of attorney of executer granted by Co. Lease should be for 11 months without any registeration but exceeding 11 months it must be registered containg blocks of lease 3 or 5 yrs with 15 to 25 % rise after each block with option to party as decided.Individual agreement be avoided else u cannot sue co. for any default. M-7830776602 


Attached File : 243986 20161117221516 692155288 resume spa.docx downloaded: 210 times

Law Aspire (Legal)     19 December 2016

Originally posted by : ANUP KUMAR
The property is required by the Company and therefore the Rent Agreement should be entered with Company only which can be executed by any Director authorised to enter into Rent Agreement (obtain board resolution for Director's authority). In case of default by the company you can file winding up petition against the company which cannot be filed against the Director who are individual.

 Mr. Anup Kumar is absolutely correct, if the entity using the property will be company, Enter into agreement with the Company and not with directors, Directors might  be registering the property as the registered office address of the company.So do the agreement with the company
Agreement will be signed by directors authorised by Board Resolution passed at a duly convened board meeting of the Company 

 


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