Section 292(1)(c) - borrowing limit ???

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Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2014 Dear All

I want to pass a back dated general Board resolution authorising directors for taking unsecured loans for a private limited co.. as per Section 292(1)(C) of CA, 1956

As per Section 292(2) of CA 1956 where this power of board has been delegated to any delegate then such resolution shall specify the total amount upto which money may be borrowed by the delegate.

So, i want to know where this power of board has not been delegated to any delegate so, in that case there is no requirement of specifying limit in the resolution upto which money may be borrowed by the board for a private limited ????

Section 180 of CA, 13 providing the limit for borrowing applicable now in case of a pvt ltd co also will not be applicable in my case as i hav to pass a back dated Jan, 2013 resolution.

looking for expert comments from learned members

Thanks & Regards

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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08 January 2014 Even though powers to borrow is not delegated, resolution shall specify the maximum amount up to which the money can be borrowed.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 Thnks Sir for ur reply.... but sir if we are not sure of the limit then can we pass this board resolution

“RESOLVED THAT pursuant to Section 292(1)(c) and other applicable provisions, if any, of the Companies Act, 1956 or subject to such modification and re-enactment thereof, consent of the Board be and is hereby accorded for obtaining unsecured loan without any limit on such terms and conditions as may be mutually agreed.”

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