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Eagle Limited (EL) is finalizing negotiations for a USD 2 million long-term loan with Oilbird International Bank Inc. (OIB), a foreign lender. OIB requires
Eagle Limited (EL) is finalizing negotiations for a USD 2 million long-term loan with Oilbird International Bank Inc. (OIB), a foreign lender. OIB requires security in the form of a charge on EL's immovable properties in Pakistan by 12 March 2024. While advised to register the charge, EL believes this is not necessary as OIB is a foreign bank. Under the provisions of the Companies Act, 2017, advise EL's management on the following: (a) Whether, with whom and within what timeframe does EL need to register the charge? (b) Assume EL was required to register the charge, but failed to do so. State the consequences of such failure. (c) Assume EL registered the charge. However, three months after registration, the repayment period of loan is extended by OIB at EL's request. What will EL need to do in this scenario?
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