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Borrowing from company's bankers

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(Querist)
26 September 2011 A company wants to avail enhanced overdraft facility (From Rs.1 cr. to Rs.1.50 cr) from its bankers.

For this purpose, should prior approval of the board is required or can it be ratified at the Board after availing the enhanced overdraft facility.

Relevant Section 292 of the Companies Act, 1956
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CA Sumat Singhal

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CA Sumat Singhal (Expert)
29 September 2011 Sir,
Borrowing from bankers in ordinary course of business is out of perview of sec 293, it is very well within sec 291 i.e. within powers of board and in that case both options are available either 1. Board approval or 2.the board can ratify all such acts and things and others, which the board could have done itself.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal
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