Question ID :
39316
Guarantee by Company to Bank for its relative entities
ABCD Pvt Ltd is a Company with 4 Directors viz A, B, C and D. PQ is a partnership firm wherein Mr.A and one other person are partners. Now, ABCD Pvt Ltd and PQ (Partnership firm) have applied for Cash Credit Limit in Bank (say 50 Lacs for ABCD Pvt Ltd and 40 Lacs for PQ). The property which is to be mortgaged as security is owned by ABCD Pvt Ltd. Now is there any bar on the Company giving guarantee for PQ so that Extension of EM can be done? Please help
posted by
BIJOY KUMAR BANSHAL
on
Jul 30 2019 12:00AM