12 July 2012
Equity share capital is liability and not asset. share capital not issued / subscribed / paid up has no existence Shares are held by shareholders as investments. they can provide guarantee and for that guarantee pledge /mortgage the shares as security for the loan taken by the company. company can mortgage its assets only and not other's assets. it can issue shares (authorized but not subscribed) to the financer as security for the loan but can not mortgage.
13 July 2012
Means Shareholders can give guarantee for pledge/ mortgage their shares on behalf of the company for the loan taken by the company? under which section and any agreement or resolution of BOard or General meeting?
CAclubindia
