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Hassan Textile Mills Limited (‘HTML) is in the process of expansion to finance and has requested a loan facility of rupees 5,000,000 fromBaronsBank (‘Bank’).As a security for the requested loan facility, HTML has offered to create an unregistered charge in theBank’s favour on the entire stock of cotton bales in HTML’s warehouse. The extension of this loan facility is under consideration by theBank’s management. You have been approached by theBank’s management for advice.Required:Under theCompanies Ordinance, 1984, advise theBank with regard to the creation of charges over a company’s assets. (10 marks)

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