Diference between Sec 372 A and 293

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Nidhi Jain

Nidhi Jain (Querist)

25 January 2011 can any one tel me the diference between Diference between Sec 372 A and 293??????

Jayashree S Iyer

Jayashree S Iyer (Expert)

25 January 2011 293(i)(d) deals with borrowing powers of the company beyond which the approval of the shareholders is required.

While 372A deals with making of intercorporate loans and investments by a company.

Nidhi Jain

Nidhi Jain (Querist)

27 January 2011 Can u tell me about limit beyond which shareholder approval is required? or where i acn find it if not so prescribed????

Jayashree S Iyer

Jayashree S Iyer (Expert)

27 January 2011 The limits are given in the respective sections.

293 (Borrowing Powers) limit - aggregate of the paid up capital of the company and its free reserves.

372A (Investments) limit - 60% of its paid up share capital and free reserves or one hundred percent of its free reserves, whichever is more.

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