Menu
Companies act, 2013
There are 3 companies X, Y and Z -:
Directors of Company X - A & B
Directors of Company Y - C & D
Directors of Company Z - E & F
C - Mother of A,
D - Brother of A,
E - Husband of B,
F - Mother-in-Law of B
Can Companies Y & Z offer corporate guarantee towards loan taken by Company X?
Replies (2)
yes, it can be provided it is under compliance with sec 186 of CA, 2013
Yes as per section 186(2)- , The Company Y &Z can give gurantee to the Loan taken by the Company X upto 60% of the paid up share capital , free reserve and securities premium or 100% of the securities premium whichever is higher by passing board resolution in Board Meeting.
But if such gurantee exceeds the specified limit then Company has to pass special resolution in general meeting.
But if Company Y & Z are private Limited Company , then no need to pass Special resolution for exceeding the specified limit. Board resolution is sufficient
Recent Topics :
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
- Applicability of FCRA to Article Processing Fees (
- GST Return
- Practical queries on buy back of shares
- Any faculty recommendations for latest batch recor
Related Topics :
CAclubindia
