Hi Everyone,
Can a holding company give a corporate gauarantee to the third party for its subsidiary company which is holding 99.9% shares in the holding company. If yes, then what is the procedure for the same. Please guide.
Thanks,
Meena Gupta
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Intercorporate loans & guarantees
Replies (1)
Dear Ms. Meena,
Your query needs some more clarification:
I am giving my views on the presumption that A is the holding company B is the subsidiary company and C is the third party. Now i think your query is can A gives gurantee to C for providing loan to B.
Sec 372A is not applicable to Private company. Taking into your case if its a Public company then also i think it would be exempted as per the Sec 372 A (8) (d).
I hope i have understood your query in right manner.
Nidhi
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