Director standing surety for outsider against whom prosecution was launched Whether ultra vires the company

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....>Companies Law<br>Circular : No. 37/75 [F. No. 14/5/74&#8209;CL&#8209;V], dated 17&#8209;1&#8209;1976. Subject:- Director standing surety for outsider against whom prosecution was launched &#8209; ....

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.... in furnishing the company's surety to an outsider (i.e., one not connected with the company's administrative structure) is ultra vires the company. The directors of companies are hence advised that t....