29 May 2016
Dear Sir,
Under section 180 in regard to borrowing-whether Board needs to take approval of members only for amount which exceeds the paid up capital and free reserves or for the entire amount.
Eg Borrowings already held-110 , further to be raised-70 PUC+reserves-150 .Then here approval is required for 30 only or for the entire amount of 70.
31 May 2016
As per Section 180 of the Companies Act, 2013 the approval has to be taken for whole amount as the section specifically states that "where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid up share capital and free reserves". Thus the whole borrowing has to be approved by the Board.
CAclubindia
