TaxTMI 
TaxTMI 
If company A is itself a partner in partnership firm B, does restriction of section 185 of the Companies Act apply to corporate guarantee given by company A to secure the loan sanctioned to partnership firm B by the bank ?
section 185 of companies act 2013
sougata mitra
Corporate Guarantee by Partner Company Not Restricted Under Section 185 Unless Directors Involved in the Partnership A query was raised regarding whether the restriction under Section 185 of the Companies Act, 2013, applies to a corporate guarantee given by Company A, which is a partner in Partnership Firm B, for a loan sanctioned to the firm by a bank. The response clarified that Section 185 does not apply unless a director, manager, or their relative from Company A is also a partner in Partnership Firm B. (AI Summary)