Registration of charges with the roc
Sathyan Avinash
(Querist) 13 October 2011
This query is : Resolved
Dear Sir,
I need your help on this particular case study which was asked by my professor to me. The particulars of the case are as follows:
X Ltd , a private limited company wants to borrow funds from a nationalised bank. The company has no assets in its name but one of the promoter director is willing to give his property as security for the loan borrowed. Hence in this case is it necessary for the company to file a e-form 8 with the registrar of companies .
An appropriate and quick reply would be much appreciated.
Thank you
Raj Kumar Makkad
(Expert) 13 October 2011
Yes. Such company is required to file e-form with registrar of companies prior to obtaining any loan for the benefit of such company.
Sailesh Kumar Shah
(Expert) 14 October 2011
There is no need to file Form 8 in case of When one of the promoter director is willing to give his property as security for the loan borrowed.
B.Chakrapani Warrier
(Expert) 14 October 2011
Since property encumbered is not belonging to the company, the company as well as the lender has no obligation to register the charge (e-filing of form 8) with ROC.
Sathyan Avinash
(Querist) 15 October 2011
I cant understand why the first expert to reply advised to file the e-form 8 prior to getting the loan. Because we all know that e form 8 is to be filed within 30 days of creation or modification of charges. Hence the matter of filing it early with the ROC does not make sense in any way.
And for others who replied I thank you very much, you made me proud in front of my professor.
