Section 185 Guarantee to Directors

[CS ladda]

Dear Friends,

Facts of the case:

1. ABC Company Private Limited

2. Mr. A and Mrs B are Shareholders an Directors of Company. None o fthem is MD or WTD.

3. Mr. A is taking loan of Rs.20 Crores and for that Abc Company Private Limited is providing Security of its Immovable Property as a security and guarantee to Bankers.

Query :

Whether Section 185 allows these types of transactions ?

Your views are much appreciated.