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Section 180(1)(c) of the companies act, 2013

Nikhil Shand (Article) (25 Points)

27 March 2015

Please provide the answer to the query As per sec 180(1)(c) wordings the money to be borrowed together with the money already borrowed if exceeds the paid up share capital and free reserves of the company, requires special resolution. Now, If the company has a past borrowings which already exceeds the limit above, whether we still need the special resolution for that old borrowings and that to should be filled with Roc within the stipulated time?

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3 Replies

Rahul Agarwal (Chartered Accountant) (213 Points)
Replied 27 March 2015

So what I feel is special resolution and related compliances will still need to be made as any new borrowing will mean that borrowing is more than the given condition in the section.

And if we generalize this, looking it from a control standpoint, seeking approval is a control one should execute as the company has already exceeded the limit.

We can wait for other anwers too. Tx

Rajesh Kumar (Consultancy) (93 Points)
Replied 27 March 2015

Hi Nikhil Shand,

Acording to my interpretation every time we borrow money plus already borrowed which is in the excess of paidup capital and free reserv, special resolution is required to be passed by the company in general meeting

Regards

Rajesh Kumar

Tejpal Sheth (Practising company secretary-visiting fa) (1933 Points)
Replied 27 March 2015

New act can not be applied with retrospective effect unless there is clear cut expression to that effect is inserted. If ur co's borrowed amount under old act is excess than limit, your co do not need to pass special resolution. But when you renew that borrowing or borrow further, special resolution shall be passed. cs. Tejpal Sheth