cana director be held as surety (through his personal assets) for a company.
somebody (student) 17 January 2011
cana director be held as surety (through his personal assets) for a company.
SUNIL KUMAR (MAN) 17 January 2011
Yes, provided the director has executed personal guarantee in favour of the financial institution.
somebody (student) 18 January 2011
thanku so much sir, but is there any particular provision under any law which specifically allows this or is it general banking practice
DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 18 January 2011
Director can not be personally liable normally.
somebody (student) 20 January 2011
my question is, would a bank grant loan to a company if the director mortgages his personal property?
sanjay kumar (BE/ LLM in Corporate Laws) 20 January 2011
The Loan is between the Lender and the principal-debtor. Surety is the third party which guarantees repayment of the loan to the lender in case of default by the Principal-debtor.
Although your query may be legally persmissible but the Bank may refuse or sanction the loan to the company on the mortagage of a third party. In this case, the right toaccept/reject the loan request rests with the bank.
somebody (student) 21 January 2011
the right of course is reserved with the bank.. but are u aware of any such cases where the bank has allowed or rejected the application. i want to know the rule as per banking practices. kindly guide in this regard
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