Section 180(1)(c) and 186 of companies act 2013
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 May 2015
Do we need to file mgt-14 every financial year for increase in borrowing limit and investment by company??
Suppose we have increased the limit to 100crore in FY 14-15 so now again do we need to pass SR in EGM for same amount for FY 15-16 or is this valid till company does not exceed this amount??
Urgent help needed
Suppose we have increased the limit to 100crore in FY 14-15 so now again do we need to pass SR in EGM for same amount for FY 15-16 or is this valid till company does not exceed this amount??
Urgent help needed
CS PAWAN KUMAR
(Expert)
26 May 2015
Hello there,
As far as validity of special resolution is concerned, it remains valid for the one year period from the date of passing the spl. resolution.
Further, if you read the provisions of section 180 (c) of the CA, 2013, It says 'to borrow money where the money to be borrowed..." means if the money to be borrowed (emphasis) exceeds the limit.
In the instance case if the money to be borrowed does not exceeds the limit no spl res. is required.
if the previous spl resolution's validity still exist, no spl resolution required provided the borrowing does not exceed the limit as per previous spl. resolution.
However in order to the prudent business policy which takes into account the expenditure part, it becomes imperative to pass fresh spl. resolution on yearly basis with enhance borrowing limit for business and file MGT-14.
As far as validity of special resolution is concerned, it remains valid for the one year period from the date of passing the spl. resolution.
Further, if you read the provisions of section 180 (c) of the CA, 2013, It says 'to borrow money where the money to be borrowed..." means if the money to be borrowed (emphasis) exceeds the limit.
In the instance case if the money to be borrowed does not exceeds the limit no spl res. is required.
if the previous spl resolution's validity still exist, no spl resolution required provided the borrowing does not exceed the limit as per previous spl. resolution.
However in order to the prudent business policy which takes into account the expenditure part, it becomes imperative to pass fresh spl. resolution on yearly basis with enhance borrowing limit for business and file MGT-14.
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