When u modify your charge and made agreement with bank when required otherwise no required every year

Well said kothari associates,

The validity of the resolution passed under Section 185 and 186 of the Companies Act, 2013 depends on the nature and purpose of the transaction for which the resolution is passed.

Under Section 185, a resolution passed by the board of directors approving a loan or guarantee to a director or his/her relative or to any other entity in which such a director or his/her relative is a partner, director, or guarantor, is valid for a period of two years from the date of passing the resolution. This means that the company cannot provide such a loan or guarantee after the expiry of two years from the date of passing the resolution, unless a fresh resolution is passed.

Under Section 186, a resolution passed by the board of directors approving a loan, guarantee, or security provided by the company to any person or entity, is valid until the expiry of the next financial year, unless renewed by a fresh resolution. This means that the company cannot provide such a loan, guarantee, or security after the expiry of the financial year, unless a fresh resolution is passed.

It is important to note that these resolutions need not be passed every year unless the transaction for which the resolution is passed is recurring or ongoing in nature. In such cases, the board of directors may pass a single resolution, which would cover all such transactions for a specified period, subject to the limits and conditions prescribed under the Act and the rules made thereunder.

However, if the company wishes to undertake a transaction that is not covered by the previous resolution or if the resolution has expired, then a fresh resolution must be passed before the company can undertake such a transaction.