13 January 2014
can a pl co give corporate guarantee to a firm in which director of that co is a partner?whthr it will violate sec 185 of Co. Act,2013 ? If AOA of the Co provides power to the board as per sec 293(1)(d) of the old act then also this new sec 185 will attract? Since all the sec of new act are not effective till date whether Power to Board will hold any place in giving guarantee?
13 January 2014
No. Section 185 of 2013 act replaces section 295 of 1956 act. Please not that - (i) 185/295 is prohibition /restriction on LENDING and (ii) 293(i)(d) is restrictions on BOROWINGS. Corresponding section in 2013 act is 180.
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