CA. Vaishali Shah (Chartered accountant in practice) (75 Points)
10 January 2015Sir,
Can a private ltd company give guaratee for a loan obtained by a partnership firm provided the pvt ltd company is a partner in the firm? all the directors of the comany are partners in the partnership firm?
Please provide answer according to applicable provisions under companies act 2013.
Regards
CS MOHIT SALUJA
(PRACTICING CS Jalandhar 9914558709)
(5155 Points)
Replied 10 January 2015
As per reading of section 185 "No company shall give any laon to director or the eprson to whom director is interested" and as per explanation"partnership firm in which directors are partners is the one in which director is interested.
Hence, acompany can not give loan to the firm. in your case.
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