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Which Resolution?

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siddeshwar.ch (Querist)

29 June 2010 Can any one of u please suggest which resolution has to be pass in the fallowing case? 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; plz help me out in this situation

Ankur Garg

Ankur Garg (Expert)

29 June 2010 Presuming that your are asking for an unlisted public company.

In the given case where proposed loan is in excess of the aggregate of paid up capital and free reserve you have to go for shareholders approval through an ordinary resolution u/s 293(1)(d).

So pass an ordinary resolution of shareholders in the General Meeting of the company.

Revert if there is any doubt.

Thanks

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