Personal guarantee of directors
This query is : Resolved
Sai Sundar
(Querist)
13 June 2013
Dear Experts,
My query is whether personal guarantee of directors will come under the meaning "Security" for loans borrowed by the Company. Since in revised Schedule VI, the amount of borrowings have to be classified into secured and unsecured.....
In the Guidance note on the revised Schedule issued by ICAI, there is a clause saying that any personal security of promoters, shareholders or third party (such as shares or other assets) cannot become a security for the purpose of classifying loans under secured loans. However it does not talk about personal guarantee, hence my query
My query is whether personal guarantee of directors will come under the meaning "Security" for loans borrowed by the Company. Since in revised Schedule VI, the amount of borrowings have to be classified into secured and unsecured.....
In the Guidance note on the revised Schedule issued by ICAI, there is a clause saying that any personal security of promoters, shareholders or third party (such as shares or other assets) cannot become a security for the purpose of classifying loans under secured loans. However it does not talk about personal guarantee, hence my query
13 June 2013
To treat a loan as secured, the underlying asset should be owned by the company. Loans raised against personal guarantee of directors, doesn't fit in to the above, hence to be classified as 'unsecured'.
Sai Sundar
(Querist)
13 June 2013
Thank u v much sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Ito add credit side of bank
- GSTR9 Annual Return
- Employee secondment
- Gift to nri relatives resides in usa
- LLP audit and disclosure
- Capital gain on commercial property and investment in residential property
- Applicability of tax on invoice
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- GST ITC as per notification 12/2023- central tax
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
