As per clause (D) of BCD Circular
No.7 dated the 31st May, 1972, no banking company shall, make
advances to a private limited company without obtaining personal
guarantee of the directors of such company, in addition to
the normal security which the banking company may require.
This is subject to the following relaxations: -
It
has been decided that in case advances made to private limited
companies (including foreign controlled companies incorporated
in Pakistan) are fully secured by lien on Rupee deposits held
with the lending banks, the requirement of obtaining personal
guarantee of directors of the company may be waived by the
banks at their discretion.
Other instruction on the subject shall, however, remain unchanged
Please acknowledge receipt.
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