Company standing as co-applicant or guarantor to a mortgage loan raised by its Managing director

[Nihar]

Hi,

If Director of a private limited company avails a mortgage loan or home loan for buying a property and company stands as a co-applicant or guarantor to the loan, will it violate section 185 of companies act 2013 ?

Can someone clarify this

[Kalidas Ramaswami]

The Section is very clear.Company granting a guarantee for the director will infringe section 1185.
regards
kalidas
 

> Date: Tue, 3 Jun 2014 10:20:29 -0700
> From: nihar...@gmail.com
> To: foru...@googlegroups.com
> Subject: [CA RUNGTA PD] Company standing as co-applicant or guarantor to a mortgage loan raised by its Managing director

>
> Hi,
>
> If Director of a private limited company avails a mortgage loan or home loan for buying a property and company stands as a co-applicant or guarantor to the loan, will it violate section 185 of companies act 2013 ?
>
> Can someone clarify this
>

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