Personal liability of independant directors

Whether the Independant Directors and Non-executive promoter directors are liable to give personal guarantee/undertaking to the bank while the bank santions loan to the Company. the bank is asking for the same, while the independant directors are not interested, who is right?

Pls reply,

Thanks,

CS Poonam

Replies (2)

There is no law on the subject.  It all depends upon the agreement with the Bank.  You have to convince the Bank for waiver of their guarantee.  However, it is for the Bank whether to accept your request or not, and it is for the company to decide whether to take the limits on the terms stipulated by the Bank or not.

 

 

Agree with Mr. Agarwal.

Also like to add the following:

you can provide the bank  alternative guarantee or security, to the satisfaction of the bank. Much depend on your negotiation skill. Please keep it in mind that ultimately it is also the business of the bank to arrange clienf to sale their loan product.

 

Thanks,

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