No. of guarantees given by corporate

This query is : Resolved

Report Abuse Follow Query Ask a Query

Girish Sharma

Girish Sharma (Querist)
Follow

01 April 2011 How many guarantees can a corporate give to other corporates

Rasesh

Rasesh (Expert)
Follow

01 April 2011 There is no limit on the number of guarantees. Sec 373A limits the value of corporate guarantees.

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

04 April 2011 Any number of guarantees can be given subject however, that the total amount guaranteed should not exceed the limits specified in Section 372A of the Companies Act, 1956 i.e. the total amount guaranteed should not exceed 60% of the paid up share capital and free reserves or 100% of its free reserves, whichever is more. If it exceeds you need to take the approval of shareholders by passing a Special Resolution.