Application of Section 370 to section 25 companies: loans and guarantees governed by subscribed capital and free reserves. The limits of section 370 apply to companies limited by guarantee: if the company has share capital, compute ceilings by reference to subscribed capital and free reserves; if it lacks share capital, compute ceilings by reference to free reserves alone; guarantees and security attract section 370 regardless of share capital. The provision applies unless an exemption under subsection (2) is available.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Application of Section 370 to section 25 companies: loans and guarantees governed by subscribed capital and free reserves.
The limits of section 370 apply to companies limited by guarantee: if the company has share capital, compute ceilings by reference to subscribed capital and free reserves; if it lacks share capital, compute ceilings by reference to free reserves alone; guarantees and security attract section 370 regardless of share capital. The provision applies unless an exemption under subsection (2) is available.
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