Procedure to increase borrowing power of directores

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Dear friends,

A Public Limited company listed in both stock exchanges wants to borrow money in excess to its aggregate of the paid up share capital and its free reserves.   Inorder to do that it is seeking shareholders consent to pass a resolution giving the authority to the Board of Directors.  What is the procedure to follow?

 

Replies (1)

Approval of Members has to be obtained under Section 293(1)(d) and 293(1)(a) of the Companies Act, 1956, for borrowing money in excess of paid-up capitla and free reserves. Form 23 has to be filed with ROC within 30 days of passing the resolution.

Murali


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