Our Public Ltd. Company gave corporate guaranttee to Bank for our associate Company.
Now i want to know is it mandatory to file form 8 for both the companies??
Banker is insisting to file form 8 for both the companies and according to me, that will increase the liability for both the companies.
Please suggest some solution for the same
You have to file form 8 for both the companies
It will not increase the liability as you may also attach with form 8 the board resolution about consenting to provide corporate guarantee to your associate company and that the liability will arise only if the later one fails to repay the debt.
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