Can a branch be a guarantor?

Legal analysis: branches can be guarantors, but only if they face bona fide third parties. In other cases, without the resolution of the board of directors or shareholders' meeting of the Head Office, the guarantee contract will not take effect.

Legal basis: Interpretation of the Supreme People's Court on the Application of the Guarantee System in People's Republic of China (PRC) and Article 11 of the Civil Code of People's Republic of China (PRC). If a branch of a company provides a guarantee in its own name without the resolution of the shareholders' meeting or the board of directors, the people's court will not support it, except that the other party does not know and should not know that the branch has provided a guarantee without the resolution procedure of the company.