Sec 295- urgent

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cs.silky (Querist)
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14 February 2012 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 )

udit sharma

udit sharma (Expert)
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14 February 2012 No approval of the Central Government is required in this case.

Previous approval of Central Government would have to be obtained if the Company intends to give guarantee in connection with a loan made to any partnership firm wherein any Director of the Company or any Director of the Holding Company of the Company providing guarantee or any relative of any such Director is a partner.

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