Gurantee under section 295

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2011 If a public co. goves gurnatee for a loan obtained by a private company from public financial institution, in which there are common directors, whether section 295 applicalbe on this transaction

CA Sumat Singhal

CA Sumat Singhal (Expert)
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29 September 2011 Sir,
Definition of Specified persons mentioned in sec 295 includes any pvt company of which any such director is a director or member.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2011 sir, my question is that whether corprate gurnatee given to a private company for a loan obtained by public financial instituion will be covered u/s 295. i want to know whether Public Financial instution will cover under "person" word in section 295.

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