guarantee given for another co under sec 185

Ashutosh Singhal (3 Points)

05 June 2019  
when the shareholding of any company (let say ABC Pvt Ltd) is held with other 4 private companies. in view of the same if these 4 shareholding Pvt Ltd companies are giving guarantee for the loan taken by ABC Pvt Ltd. whether this will breach the sec 185/186 of the companies act. it is important to submit that the loan shall be used for the business activities of ABC Pvt Ltd.