Hello,
Can a property owned by a private limited company be given as a collateral security for loans raised by Directors (in their personal capacity) ? And Can a company stand as a guarantor for these loans ? What implications does it have in terms of Companies Act and Income Tax ?
For Private Companies Sec 185 & 186 is exempted subject to compliance of three conditions ,viz
a. In cos ROM no body corporate is member
b. Loan and borrowings are less than twice of paid up capital or 50 Crore
c.no subsisting default in repayment of loan .
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