Can a Public Company give Guarantee to NPO (University) or Trust as per Section 179 (3) (f) of CA2013? if no then quote the Reason its Urgent please.
Mayank Jain (Student) (67 Points)
24 June 2016Can a Public Company give Guarantee to NPO (University) or Trust as per Section 179 (3) (f) of CA2013? if no then quote the Reason its Urgent please.
Jatin Bajaj
(CS)
(2928 Points)
Replied 25 June 2016
SECTION 179(3) TALKS ABOUT THE POWER EXERCISED BY THE BOARD ONLY AT THE BOARD MEETING IN WHICH MGT 14 IS PASSED WITHIN 30 DAYS OF PASSING RESOLUTION.
SECTION 179 SPECIFIES THE POWER WHICH CAN BE EXERCISED BY THE BOARD.
AS PER SECTION 186, COMPANY CAN GIVE GUARANTEE TO ANY BODY CORPORATE AND BODY CORPORATE INCLUDES BOTH INDIAN AND FOREIGN COMPANIES.
bUT AS FAR AS SCTION 179(3) (F) IS CONCERNED.WHICH SAYS TO GRANT LOAN OR GIVE GURANTEE OR PROVIDE SECURITY IN RESPECT OF LOAN, THE FOLLOWING POWER SHALL BE EXERCISED BY THE BOARD BY PASSING CIRCUL;ATION INSTEAD AT THE BOARD MEETING FOR SECTION 8 COMPANY VIDE NOTIFICATION DATED 5TH JUNE 2015.
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