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Board resolution for borrowing

Co Act 2013 1542 views 1 replies

Pankaj jhunjhunwala

97 Points Joined March 2011

One of my client had passed special resolution for borrowing UPTO RS 8 CRORE exceeding net worth.under section 180(1)(c) of company act 2013 on march 2014.NOW COMPANY TAKES THE LOAN OF RS 10 LAKHSWHICH WAS COVERED UNDER LIMIT AFORESAID ON 08.05.2014. MY QUERY IS THAT

WHEATHER FRESH BOARD RESOLUTION REQUIRED FOR BORROWING OF RS 10 LAKHS.IF REQUIRED ,THEN IT SHOULD BE FILED WITH ROC WITHIN 30 DAYS UNDER SECTION 117 .OF COMAPNY ACT 2013

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Special resolution passed by members is not a resolution for borrowing. It is just an authority to the Board to borrow within the specified limits. Thereafter, Board has to pass resolution for actual borrowing in Board meeting only and the Board resolution has to be filed with Form MGT.14. Form CHG.1 needs to be filed separtely, if applicable.