IS THERE ANY BORROWING LIMIT FOR PRIVATE COMPANY IN REGARD TO PAID UP SHARE CAPITAL AND ITS FREE RESERVE? WHICH RESOLUTION IS TO BE PASSED.
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BORROWING POWER
Replies (4)
| Originally posted by :U.M. Nagaraj | ||
| " |
There is no borrowing limit for the Private Company except board approval. Section 293(1) (d) is not applicable to the Private company. But in Board resolution amount should be mentioned. if that limit exceed we should further get the approval from the Board. |
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Yes, I agree with Mr Nagaraj,
Sec 292 (1)(e) speaks about board approval only. And sec 295 is not applicable to pvt compnay untill it is subsidiary of public ltd.
What is the borrowing limit for a public limited company
Can a Pvt. Ltd Company with paid up capital of one Lakh take lone from a bank up to 7 lakhs (Car lone) if yes please meson sec if any
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