How to trace out if the company has given corporate guarantee and personal guarantee in favour of its sister concern? If that company is not willing to show such corporate guarantee in the footnote of accounts
MANNU (Senior Article Assistant) (49 Points)
30 March 2014How to trace out if the company has given corporate guarantee and personal guarantee in favour of its sister concern? If that company is not willing to show such corporate guarantee in the footnote of accounts
Rajagopalakrishnan R
(PARTNER)
(1417 Points)
Replied 08 May 2014
A company cannot give corproate guarantee without
1. a board resolution suthorising such guarantee and
2. a board resolution authorisng the fixing of common seal on such guarantee agreement.
So the Board minutes should reveal all such guarantees given. These should be properly disclosed in the NOA
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