If there are 4 directors in a private limited company and then the company has taken a bank guarantee for their product then after a while one of the directors of the company quits the company then does the bank guarantee desolve or is it still valid till end of period? What will be the nature of such bank guarantee?
3 Replies
Vidisha Gupta
(Company Secretary)
(91 Points)
Replied 07 September 2013
No, as the bank guarantee is made between bank and company so if any director leave the office there will be no effect of same on BG
Anandana N
(CA Practice )
(68 Points)
Replied 10 September 2013
What are the sections applicable for this?
Anandana N
(CA Practice )
(68 Points)
Replied 13 September 2013
Also i dont think this would be correct as there is a personal liability as well of the director involved while giving bank guarantee. For a pvt limited co the directors are personally also liable for all acts of theirs.
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