Director standing surety to outsider - Instructions to directors not to expose themselves to risk of standing sureties for accused persons

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....s Law<br>Circular : No. 37/75 [14/5/74&#8209;CL&#8209;V], dated 17&#8209;1&#8209;1976. Subject:-Director standing surety to outsider - Instructions to directors not to expose themselves to risk of st....

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