Pledging of Shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2011 Hi, I am a Director in Private Limited company and I have 10000 shares. Can I pledge the shares to company and avail a loan from company. If I can pledge, please help me out with provisions of pledge of shares with maximum and minimum limits. Also please help me out with provisions for buying back the pledged shares from company.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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01 March 2011 Plz provide us few more detail
that is as follow
1 Total authorised capita of the company ,coz it will determine the maximum amount of loan can be given to a director
2 Number of shares company have
3 AND as you want to avail loan from company by pledgeing your share so when you will paid back to the company it will be automatically be freed and no need to buy it back .
4 is there is no any restriction in the Article of Association of company regarding the giving loan to the director
5 is any specific limit mentioned in the Article of Association regarding giving loan to director .
6 And a proper resolution for the same has been passed in Board meeting .
7 Is there is any provision regarding the qualification share ,if yes than you should have to held at least that share in order to retain you director ship .
8 Rate of interest that you will paid should not be below the prevailing rate of market

Thank

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 Sir, Thanks for the reply,
1. Authorised capital - 65,00,000
2. Shares - 640000
3. No restriction in articles for loan and limit
4. we will pass the resolution after evaluating possibilities
5. no provision regarding qualification share
6. whether rate of interest is bank interest?

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