banner_ad

Borrowing powers of the company.

This query is : Resolved 
Profile Image

Profile Image

(Querist)
24 March 2012 One of our client companies have applied for loan in a bank. But the bank has objected that borrowing power clause is not present in AOA of the Company. Although the borrowing power clause is present in MOA but not in AOA.



How to prove that borrowing is not ultra vires .

Also i want to know doctrine of ultra vires is present in which section of the Companies Act.
Profile Image

HONEY AHUJA

Profile Image

HONEY AHUJA (Expert)
24 March 2012 See your Artciles starting wording again. It must have reference of TABLE A. If there is nothing mention in the articles then provisions of Table apply. Even then if they say no then amend Artciles and pass resoltuion u/s 293(1)(a) and (d).
Profile Image

Nidhi

Profile Image

Nidhi (Querist)
24 March 2012 Yeah we adopted the Table A. There is no provision regarding borrowing power clause in the Table A . Leave what the bankers are saying what is the actual position.

Whether loan can be taken without such provison in AOA .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details