Originally posted by : Osborne |
|
In a Venture Capital/Private Equity firm structured as a Private Limited Company, can the Board empower the Managing Director with powers to invest funds of the Company? Further can powers to sell/disinvest also be conferred on the MD?
Would appreciate if you can give examples of companies where this happens.
Thanks in advance. |
|
Answer to your query is Yes, the board may authorise MD to invest the funds of the Company.
Please refer first proviso to Section 179(3) which is reproduced below for your reference.
As per first proviso to Section 179(3) of the Companies Act, 2013 the Board may, by a resolution passed at a meeting, delegate to anycommittee of directors, the managing director, the manager or any other principal officer ofthe company or in the case of a branch office of the company, the principal officer of the branch office, the powers specified in clauses (d) to (f) on such conditions as it may specify:
Here Power to invest the funds of the company fall in clause (e) of Sub Section 3 of Section 179.
Regards,
Arjun Rajagopal