Company A is in need of funds, where CK & MK are directors. 97% of the shareholding is with another Pvt ltd company (Co. B) in which again CK & MK are the shareholders & directors both.
Since company A is in need of funds, CK & MK both have offered to pledge the shares held in Company A by Co. B.
What would be the entire procedure to be adopted -for pledging of their i.e Co. B shareholding for funds required by A?
1st - B may pass board resolutions to pledge shares, 2nd - Intimate Co. A about their pledge 3rd - enter into pledge agreement with lenders also making Co. A a party to it, since funds here are obtained for A, pledging is done by B 4th - Any other ROC formalities ?
Kindly help me with the entire process, if my approach is correct? Any other ROC filings needs to be done?
CAclubindia
