Legal Question in Banking Law in India

Can shares in the name of x (huf) can be assigned for loan availed by a pvt ltd company where x (huf) is a director. If so procedure to be followed.


Asked on 3/27/15, 5:45 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

27.03.2015

Dear Sir / Madam,

Yes. A special resolution may be passed by an absolute majority of the shareholders, wherein the prior in principal approval and consent of the lending Bank or financial institution to the Board of the Private Limited Company, agreeing to this arrangement, should be placed for voting by the shareholders. The concerned Director is not eligible to cast his / her vote on this special resolution agenda.

Regards,

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Answered on 3/27/15, 6:26 am
J. Radhakrishnan independent Practice

If the huf guarantees the loan it can pledge its shares. It should be done with the consent of all members of the HUF

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Answered on 3/28/15, 5:13 am


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