11 March 2013
A company has given Corporate Guarantee to another co and has passed SR in GM as per Section 372A. Now the co wants to renew the CG in the next year. So does the co need to call a GM again and pass the necessary resolution?
Generally General meeting give approval for guarantee/loan/investment up to a limit. If your corporate guarantee is with in the limit (including outstanding guarantee)as passed in General meeting, then no need to pass again SR.
If after giving such guarantee your limit going to be exceeded from earlier limit, then you should pass again SR.
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