What if a negative pledge clause is incorporated in the floating charge? How will the negative...
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What if a negative pledge clause is incorporated in the floating charge? How will the negative pledge affect subsequent transaction with third parties? Discuss. Describe the circumstances under the Companies Act 2016, where a company may provide financial assistance for a person to acquire shares in the company. Amra Sdn Bhd. created a floating charge on 1 February 2021 over all of its assets and undertakings as security for the repayment for a loan taken from Bank Siap Bhd. (BSB). Amra had also purchased some office equipment on credit from Lola and had defaulted five months of intstalments. On 1 April 2021, Amra created a fixed charge over its printing machines in favour of Bank Jarah Bhd. (BJB). In June 2021, Amra defaulted the repayment of loan to BSB. BSB now wants to recover the loan from Amra. Advise What if a negative pledge clause is incorporated in the floating charge? How will the negative pledge affect subsequent transaction with third parties? Discuss. Describe the circumstances under the Companies Act 2016, where a company may provide financial assistance for a person to acquire shares in the company. Amra Sdn Bhd. created a floating charge on 1 February 2021 over all of its assets and undertakings as security for the repayment for a loan taken from Bank Siap Bhd. (BSB). Amra had also purchased some office equipment on credit from Lola and had defaulted five months of intstalments. On 1 April 2021, Amra created a fixed charge over its printing machines in favour of Bank Jarah Bhd. (BJB). In June 2021, Amra defaulted the repayment of loan to BSB. BSB now wants to recover the loan from Amra. Advise
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Incorporating a negative pledge clause in a floating charge means that the company agrees not to cre... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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