Corporate guarantee by pvt ltd co

This query is : Resolved

MANOJ KUMAR SINGH (Querist)
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26 November 2011
Dear Sir

We want to know that whether sec 372 A is applicale to pvt ltd co or it is applicale to public limited co only .
i.e. can a private limited can give corporate guarntee to other party

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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26 November 2011 The provisions of section 372A does not apply to the guarantee given by private company unless it is a subsidiary of a public company.

However, a private company can give guarantee.

Charu Srivastava

Charu Srivastava (Expert)
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26 November 2011 Section 372(A) of the Companies Act does notapply to Private Company unless it is a subsidiary of a Public Company.

But that does nt mean that the private Company cannot give corporate guarantee.Its just provisions of this section do not apply it.