H.Ananthakrishna Rao (Consultant) (26 Points)
28 November 2009A Ltd is a Public Ltd Company with a paid up capital of Rs. 1 crore.B Ltd is a Private Limited Company.Mr X is a Director of A Ltd and a Shareholder in B Ltd. A Ltd gives a Corporate Guarantee to a Financial Institution towards the repayment of Loan by B Ltd.
Whether the provisions of Sec 297 are attracted?
CA Jitender K Mittal
(CA (Qualified)l B.com NCFM )
(143 Points)
Replied 28 November 2009
SECTION 297 IS NOT ATTRACTED , THIS CASE DEPEND ON SECTION 295
Ratti Wahal
(Company Secretary)
(139 Points)
Replied 28 November 2009
Dear Mr. Rao,
As per my opinion, provisions of Section 297 of the Companies will not be attracted in your case.
This is for your information, please.
Regards,
gokul
(Accountant)
(126 Points)
Replied 28 November 2009
The mentioned transaction falls under the purview of
Section 295 - Loans to Directors and other specified persons.
Section 372(A) - Intercorporate Loans and Investments.
CAclubindia
