Guarantee by Pvt Ltd company

khushboo (CS) (234 Points)

07 March 2011  

Dear All

 

Can any one guid me that

If a Pvt Ltd Company having Paid up Capital of 8.5 Crores gives Gaurantee for a Bank Loan (approx 18 Crore amount) to other Pvt Ltd Company, in which relatives of Directors of Formal company are Directors and Shareholders in later company then which provisions of company law attracts here ???

 

Thanks In Advance