CS Davender Kumar (CS) (32 Points)
21 September 2012Our Public Ltd. Company gave corporate guaranttee to Bank for our associate Company.
Now i want to know is it mandatory to file form 8 for both the companies??
Banker is insisting to file form 8 for both the companies and according to me, that will increase the liability for both the companies.
Please suggest some solution for the same
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 21 September 2012
You have to file form 8 for both the companies
It will not increase the liability as you may also attach with form 8 the board resolution about consenting to provide corporate guarantee to your associate company and that the liability will arise only if the later one fails to repay the debt.
CAclubindia
