22 February 2014
Querry: There are three partners in a firm say Z & Co. Mr. A, Mr. B & C Ltd. (a public limited Co.). Also Mr. A & Mr. B are directors in C Ltd. Now whether C Ltd. can provide guarantee for the loan to be taken by Z & Co. ? if Yes please explain the procedure. Whether Sec. 185 of Companies Act, 2013 has been made applicable?
22 February 2014
Section 185 has been made applicable with effect from 12th September, 2013. As per the said section, C Ltd. cannot provide guarantee for the loan to be taken by Z & Co.
CAclubindia
