Inter corporate guarantee
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 July 2012
A Public Listed Company is engaged in producing sugar. Yes Bank Ltd. ( a Listed Private Sector Bank) will advance loans to the farmers provided the Public Company provides Guarantee to the Bank. Please advise whether Sec. 372A is attracted and needs to be complied with. Thanks. Sreedharan
Ajay Mishra
(Expert)
12 July 2012
Hi
Section 372A says when a public company give any loan, guarantee or security to/in connection with any body corporate.
In your case bank is given loan to former(not a body corporate) and Sugar company give guarantee, so as per my understanding section 372A will not apply.
Section 372A says when a public company give any loan, guarantee or security to/in connection with any body corporate.
In your case bank is given loan to former(not a body corporate) and Sugar company give guarantee, so as per my understanding section 372A will not apply.
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