section 185 of companies act 2013, Corporate Laws / SEBI / LLP

[sougata mitra]

If company A is itself a partner in partnership firm B, does restriction of section 185 of the Companies Act apply to corporate guarantee given by company A to secure the loan sanctioned to partnership firm B by the bank ?

Posts / Replies

[CA SOHRABH JINDAL]

NO,

But if in partnership B, any director manager or relative of director and manager of company A is a partner then 185 will be applicable