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    Section 185 & 186 of the Companies Act, 2013 (guarantee given to a Partnership Firm by a Company)

    Posted By : Sachin / Published on : 18-Nov-2020 09:22 AM / View : 217 / Comment : 0

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    Dear Members,
    Greetings to all..
    kindly clarify whether a Private Company can give guarantee to a Partnership firm (one of the partners of the fim is the Director in the guarantee given Company). As per section 185 (1) (b) of the Companies Act, 2013 it have restriction to give any loan or guarantee to any firm in which any such director or relative is a partner;
    meanwhile Section 186 (2) (b) explains "No Company shall directly or indirectly give any guarantee or provide security in connection with to any other body corporate or person not exceeding the prescribed limit."

    clarification required:
    whether a company can give guarantee or not? if no under section 185 (1) (b) of the companies Act, 2013 means why the limit of the Guarantee has included "any person or any body corporate" in section 186 (2) (b) of the Companies Act, 2013.

    Read more on : partnership firm company given guarantee companies section

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