Can a private ltd company give corporate guarantee to a ltd. company??
Can a private ltd company give corp guarantee to a ltd. co.
Ranjith Karippara (Accounts Manager) (24 Points)
08 July 2012
Ranjith Karippara (Accounts Manager) (24 Points)
08 July 2012Can a private ltd company give corporate guarantee to a ltd. company??
CA MOHAMMED IRFAN
(Chartered Accountant)
(136 Points)
Replied 08 July 2012
Yes, of course a private company give corporate guarantee to a limited company provided the Objects Clause in the memorandum of the company allow such a guarantee and prior approval of the board is accorded by way of unanimous resolution passed at a board meeting and the guarantee provided is within the ceiling specified u/s 372A of the Companies Act, 1956.
nidhigoel89
(Company Secretary )
(594 Points)
Replied 09 July 2012
Hello,
Provisions of Sec 372A of Companies Act would not be applicable in your case as its a private company.
Thanks!
Regards
Nidhi.
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