Can a private ltd company give guarantee to partnership firm

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Can a private ltd company give bank guarantee to a partnership firm??

Replies (2)

Yes,

Sunil K. Jain

Practising Company Secretary

9810104162;skj13 @ rediffmail.com

Ms. Chandrika,

As per sub section 8(iii) of Section 372A, Nothing contained in Section 372A shall apply to a private company, unless it is a subsidiary of  a public company;

Section 295 not applicable to private company unless it is a subsidiary of a public company.

But you  have to go through your AOA, if not restricted by AOA of your company, private company can give bank gurantee to partnership firm.


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