SEC 293 - BORROWING POWERS OF A COMPANY AND ULTRA VIRES

This query is : Resolved

Guest

Guest (Querist)

03 July 2010 Hi,

I have been given a project in college on the topic "Borrowing powers and effects of ultra-vires of bowwowing" under Companies act, 1956.

My content for the project should contain atleat 15 pages. Can you please suggest links and resources where I can get enough information on this.

Thanks

Mohit

Ankur Garg

Ankur Garg (Expert)
Follow

04 July 2010 First search on google. Key word---borrowing power under companies act, 1956.

Connected sections in companies act are 292 and 293(1)(d).

A company can borrow by passing a board meeting resolution u/s 292.

However if proposed loan is in excess of the aggregate of paid up capital and free reserve of the company then before taking such loan approval of shareholders through AN ORDINARY resolution is required u/s 293(1)(d).

This is for your info and basic understanding.

Regards

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now