Section 179(3) gives permission to BOD to delegate power of investing of funds and granting of loans to specified persons.
However section 186(5) requires unanimous resolution of board to make any investment or loan. How can unanimous resolution be obtained if the board can
delegate it's power to any one of directors.
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Contradiction in section 179(3) and 186(5) of companies act 2013
Replies (1)
There is no contradiction. You have to read Section 186 alongwith Section 179(3). As per 186, unanimous approval of board is required. However, once board approves it, they can delegate such powers to board or committee with limits.
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