Section 185 of companies act 2013

Dear Member, 

There is lots of confusions over interpretation of sentence "ordinary course of business", under section 185 of New Companies Act.

There are no exemptions for private companies. Thus, in case a private co. engaged in manufacturing of goods gives gurantees to bank for loan to another pvt. company (not subsidary), this will be in contravention of Sec.185.

And both companies have common directors.

Please comment.

Regards

Rohit