You are the Company Secretary in Practice (PCS) of XYZ Ltd. a section 8 company. The company informs you that it wants to give a guarantee in a 10 days' time, of loans borrowed by a third party, for which a Board resolut

As per Section 179(3)(f) of the Companies Act, 2013, the Board of Directors of a Company shall exercise the power to grant loans or give guarantee or provide security in respect of loans, by means of a resolution passed at the meetings of the Board. Provided that the Board may, by a resolution passed at a meeting, delegate to any Committee of directors, the Managing Director, or Manager or any other principal officer of the Company or in the case of a branch office of the Company, the principal officer of the branch office, the above cited power, on such conditions as it may specify. However, such power as specified in Section 179(3)(f) of the Companies Act, 2013, may be exercised by Section 8 Companies by passing a resolution by circulation as provided under Section 175 of the Companies Act, 2013, read with its sub-sections and provisions. (Notification dated 5th June, 2015.) Hence, XYZ Ltd can follow the provisions of Section 175 read with its sub-sections and relevant Rules, of the Companies Act, 2013 and pass the required resolution by circulation.