Sec 185 & 186
Vikash Agarwal (MBA) (35 Points)
21 October 2016
There is a Company A, it's directors are X and Y. It intends to take loans from banks for setting up a manufacturing unit.
There is another Company B, its directors also being X and Y. It's shareholders are individuals and it has not taken any loan nor has it defaulted in loan repayment. Company B owns a property.
Now, is it possible under Companies Act, 2013 that Property owned by Company B be offered as collateral security against loan to be taken by Company A. Can Company B give corporate guarantee for loan to Company A?