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garima (Querist)
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25 September 2009 for a term loan is the board resolution be passed at a validily held board meeting only and not by circulation

and can a resolution for opening a letter of credit facility with bank be passed by circulation

urgent, please reply

Ankur Garg

Ankur Garg (Expert)
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25 September 2009 Hi,

The combination mentioned by you is possible subject to the compliance of Quorum provision under section 287 and resolution by circulation provision under section 289.

Regards

garima

garima (Querist)
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25 September 2009 please clarrify that in 1st case
it can be carried out at the meeting of the baord only not by circulation

and in second case can it be done by circulation, if yes then why

garima

garima (Querist)
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25 September 2009 any reference about the same in Companies Act, 1956

Ankur Garg

Ankur Garg (Expert)
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25 September 2009 Your first case i.e. term loan is governed by section 292(1)(c) and as per the clear cut language of section 292 business covered by section 292 can be done only at a validly conducted board meeting and not by circulation.

Check the following language of section 292== â€œit shall do so only by means of resolution passed at meeting of the boardâ€.

Regards

garima

garima (Querist)
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29 September 2009 thanks and what about the second case

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