Section 180 of companies act, 2013

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2014 Sir/ madam,

According to Section 180(1)(c) of Companies Act, 2013, if the BOD takes any borrowing in excess of aggregate of its paid up capital & reserves, then a special resolution is required to be passed.

My query is whether the term "Borrowing" includes unsecured loans form Directors as well.

Kindly reply as soon as possible.

Ankur Garg

Ankur Garg (Expert)
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04 January 2014 As per my understanding borrowing from director is very much a part of borrowing for the purpose of section 180.

Rest is dependent on the following factors:

1. Nature of loan, long term or short.
2. Disclosure in books of accounts
3. Purpose of loan.

Thanks

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