https://www.taxtmi.com/circulars?id=10796 Guidelines require that personal guarantees of directors should not be taken routinely and only where genuinely warranted after appraisal; when management quality, managerial stake, viability and satisfactory financial position are established guarantees are ordinarily unnecessary, including for widely held or professionally managed companies. Guarantees may be appropriate for closely held concerns, to ensure continuity or controlled management changes, for unsecured advances to lower-rated public companies, for subsidiaries or companies with unsatisfactory finances, and where interlocking of funds exists. Where guarantees are obtained, lenders must secure undertakings prohibiting payment or receipt of any commission, brokerage, fees or other consideration, and include this as a specific facility condition. en-us Thu, 10 Sep 1970 00:00:00 +0530 Fri, 17 Jun 2011 10:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=10796 Guidelines require that personal guarantees of directors should not be taken routinely and only where genuinely warranted after appraisal; when management quality, managerial stake, viability and satisfactory financial position are established guarantees are ordinarily unnecessary, including for widely held or professionally managed companies. Guarantees may be appropriate for closely held concerns, to ensure continuity or controlled management changes, for unsecured advances to lower-rated public companies, for subsidiaries or companies with unsatisfactory finances, and where interlocking of funds exists. Where guarantees are obtained, lenders must secure undertakings prohibiting payment or receipt of any commission, brokerage, fees or other consideration, and include this as a specific facility condition. Circulars Companies Law Thu, 10 Sep 1970 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10796