Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Compliance under Companies Act

1266 views 2 replies

pooja

139 Points Posted on 05 April 2011

Hello

If any one can guide me if my company isa limite company & office premises is on rental basis from promoter of the company.

So that office belongs to promoter & not to company & now promoter has takne the loan from bank but the loan is granted inthe name of company. My question is that if that property is not belonging to company then also i have to file Form 8 or not. if yes please explain me & if not then also explain me.

++++ one more question is that if i can show that much amount granted by bank is to be loan taken from promoter.++

Thanks

Pooja S Mirani

Replies (2)

udit sharma

Company Secretary

2303 Points Posted on 05 April 2011

Hi..

As per the provisions of section 125 of the Companies Act, 1956 Form 8 is required to be filed only in cases where by any security is created on the property of the Company for the purpose of securing the repayment of the amount borrowed and payment of interest thereon. Since the Loan has been availed in the name of the Company but the property on which the charge has been created does not belong to the Company, in my opinion, Form 8 is not required in your case.