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<h1>Application of Section 370 to section 25 companies: loans and guarantees governed by subscribed capital and free reserves.</h1> 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.