Borrowings under section 180(1)(c)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2015 Earlier Sec 180(1)(c) was not applicable to the pvt. cos. but now it is applicable. One of my pvt. co. is already having borrowing exceeding aggregate of its paid up capital and free reserves.

What would be the remedy for this situation?

Lalit Kumar

Lalit Kumar (Expert)
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11 March 2015 1. Section 180(1) (C)
Applicability- Public as well as Private companies.

Condition- If borrowings [Present + Proposed] > [Paid up capital + Free reserves]

Special Resolution in the General Meeting.

Conclusion- It is recommended-

To bring down the borrowing under the limit by paying then off,

Or:

To pass a special resolution in the general meeting.

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2015 Sir, thamks for reply. If the pvt. co. is having a status of NBFC or FI, than also Section 180(1)(c) is applicable?