Applicability of 295 for extending Corp.Guarantee U/s 372A

Dear All

One listed company formed a Special Purpose Vehicle (SPV is a public limited Company) and in that SPV, it will hold not less than 26 % in equity and also 51% of the produce of the SPV will captively consumed by the Listed Company.

Now the listed entity is extending a Corporate Guarantee for the Loan taken by the SPV, which will definitely attracts the provisions of 372 A as the amount of loan is very high. And the requisite approval of the members in the General meeting will be obtained in the due course.

 My queries are

 1. Any other guidelines / rules / procedures / approvals  that are needed to be obtained/followed  for extending the Corporate Guarantee apart from the approval of the members in the General meeting u/s 372A.

2. As all the Board of Directors of SPV are Directors in the Listed company, the permission from the Central Government u/s 295 is required as the Corporate Guarantee will be treated as Loans to Directors?

 3. if the permission is required then previous approval is necessary ?

 Thanks in advance