A company is a designated partner in a LLP.
The LLP is taking a loan for which the partner company will be giving corporate guarantee.
Please advice whether it would violate provisions of Section 185 of the Companies Act.
Deepika Srivastav (CS) (53 Points)
01 August 2014
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 01 August 2014
Hi Deepika,
first of all as far as i know, Company can become a partner but not a designated partner in a LLP.....it has to be an individual......
Secondly, if the designated partner is a director or its relative then only sec 185 will be attracted, otherwise sec 186 will have to be followed.....
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