Guarantee to other pvt ltd company

LOANS/GUARANTEE/SECURITY CAN BE GIVEN TO DIRECTOR AND PERSON IN WHOM HE IS INTERESTED BY CERTAIN PRIVATE COMPANIES

A private Company which has:-

1. Body Corporate should not be Shareholder

2. Not borrowed money from Bank/ Financial Institution/ Body Corporate exceeding lower of the following:-

i.  Twice its Paid up capital

ii. Rs. 50 crore

3.      No repayment default subsisting of such borrowings at time of giving loan