Can A limited company give guarantee to the loan given by a bank to a partnership firm if that limited company holds 50% holding in that firm. ( Is CG Approval required in this case for the company to give guarantee as per section 295 )
cs.silky (CS) (63 Points)
14 February 2012Can A limited company give guarantee to the loan given by a bank to a partnership firm if that limited company holds 50% holding in that firm. ( Is CG Approval required in this case for the company to give guarantee as per section 295 )
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 14 February 2012
295(1)b if any director of the compny or his relatives are partner in the said firm then CG approval resquired.section not applicable if holding company give loan guarantee to its subsidiary. in your case it is a firm which can not be subsidiary
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