Section 293(1)(d) - pls help in interpretation

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Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 section 293(1)- the board of directors of a public co shall not except with the consent of company in general meteeting

(d) borrow moneys after the commencement of this Act, where the moneys to be borrowed, together with the moneys already borrowed by the company (apart from temporary loans obtained from the company' s bankers in the ordinary course of business), will exceed the aggregate of the paid- up capital of the company and its free reserves, that is to say, reserves not set apart for any specific purpose;

what does this mean that is to say, reserves not set apart for any specific purpose;

pls clarify...

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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25 September 2012 you can count free reserve, but reserve created for special purpose, like debenture redemption reserve or crr or revaluation reserve etc should not be counted to calculate above limit. You can use general reserve.

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 Thanks very much sir for clarifying...

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