corporate gaurantee

Querist : Anonymous (Querist) 10 April 2010 This query is : Resolved
A company has issued corporate gaurantee to bank by board resolution only for the loan of another company B.Now B has failed to pay and the bank wants to recover from company A by virtue of the corporate guarantee.Can the bank do it and in which process?

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Ankur Garg (Expert) 10 April 2010
According to me bank can proceed to recover its loan from company A by virtue of corporate guarantee.

Regards

Querist : Anonymous (Querist) 10 April 2010
some more views

nishad (Expert) 11 April 2010
Check the MOA and find out whether the company can extend Corporate guarantee to other companies in the first place....if no then the act of the company would be ultravires and it will not be binding

If the MOA says yes...then it is very much binding and guarantee can be invoked aginst the company.

DD Sathe (Expert) 11 April 2010
Why company wants to dishonour its guarantee?
It is best to honour the commitement!

Querist : Anonymous (Querist) 11 April 2010
need some more views on the subject.Any judgements about invocation/noninvocation of corporate gaurantee if not in the MOA of the issuing company?

Querist : Anonymous (Querist) 11 April 2010
Does the corporate gaurantee need to be charged/registered with ROC ?What if not done?

nishad (Expert) 11 April 2010
What more views you are looking upto..this is simple ..if the MOA is silent about any Corporate guarantee to be extended to any other company, then its ultravires and cannot be enforced..no charges required to be registered with ROC for corporate guarantee..

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