16 April 2014
hi, i would like to know that in my pvt ltd company , both of my directors give an unsecured loan to the company, which is excess the limit of paid up capital and free reserves, so i want to whether sec 160 ia applicable in our company and we have to pass a special resolutions or not?
17 April 2014
Section 180 is applicable to both public and private limited companies. So, for borrowings in excess of the paid-up capital and free reserves, approval via special resolution is required to be obtained.
CAclubindia
