No. of guarantees given by corporate
This query is : Resolved
Girish Sharma
(Querist)
01 April 2011
How many guarantees can a corporate give to other corporates
01 April 2011
There is no limit on the number of guarantees. Sec 373A limits the value of corporate guarantees.
Jayashree S Iyer
(Expert)
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.
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