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Loan against property of another company ?

Shiva Arunachalam (Student CS) (92 Points)

18 August 2017

Company A and Company B have common Directors … Can Company B take / avail a loan against the property of Company A ?

Or

Can the Security of Company A be Extend to Company B ?

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1 Replies

Anjali lakra (473 Points)
Replied 18 August 2017

yes Company B can avail a loan against the property of Company or u can say Company A can give security against the loan availed by Company B. Also refer section 186 of Companies Act 2013. Company A will also need to file CHG 1 for creation of charge over property.