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guarantee sec 185
❓❓❓❓❓Can a Private limited company give guarantee to bank for loan to be taken by a partnership firm in which directors of pvt. Ltd. Company are partners...
Replies (3)
Yes, guarantee can be given if following three conditions are satisfied by private company:
1. No body corporate as member of private company
2. Borrowing not exceeding twice its paid up capital or fifty crore rupees whichever is lower
3. No default in repaymeny of such borrowings
1. No body corporate as member of private company
2. Borrowing not exceeding twice its paid up capital or fifty crore rupees whichever is lower
3. No default in repaymeny of such borrowings
no cannot be given
Notification dated 5th June, 2015 has provided exemption to private companies from compliance of Section 185 of the CA,2013 if it fulfills three conditions as I mentioned in my earlier reply.
Post introduction of Companies(Amendment)Act, 2017, when Section 185 has been completely subdtituted, still Exemption Notification dated 5th June, 2015 is applicable.
Post introduction of Companies(Amendment)Act, 2017, when Section 185 has been completely subdtituted, still Exemption Notification dated 5th June, 2015 is applicable.
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