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Can a private ltd company give bank guarantee to a firm

SAROJA (student) (72 Points)

17 November 2015

Can a private ltd company give guarantee to a partnership firm, in which it's director is partner ??

then what is the procedure ?

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Krishan Singla (Corporate Law Advisor ) (1026 Points)
Replied 18 November 2015

Dear Saroja A company cannot give guarantee on behalf of a partnership firm in which one of its director is a partner as per provisions of section 185. However section 185 saves whatever is provided under any other sections of the Companies Act, 2013. So a company can provide a guarantee by complying provisions of section 186, as it authorizes a company to give loan/ guarantee etc. Pl contact at 9872999989 for further clarification if need be.

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