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Queries with respect to borrowing by company over and above

MCA 933 views 3 replies

Ankit Agrawal

32 Points Joined March 2011

For granting power under section 180(1)(c) of new Company Act 2013 (Sec 293(1)(d) earlier) do Company required to hold fresh General meeting & passing spcl resolution OR old resolution passed through ordinary resolution under sec 293(1)(d) is sufficient?

Replies (3)

CS Arjun Rajagopal

B.com ACS

1056 Points Joined August 2011

Dear Ankit,

Since Sec.180 is notified by MCA, you need to obtain member's approval by passing special resolution.For that purpose convene an EGM and file form 23 with ROC.

Regards,

ARJUN RAJAGOPAL

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

As per Sec.465(2) of 2013 Act, resolution passed under 1956 Act shall continue to be in force. However, Sec.465 has not yet come into force since CA 1956 has not been repealed fully. If no new loan is taken, existing resolution will be OK. However, if new loan is taken in excess of specified limits, a fresh resolution u/s 180 of 2013 Act should be passed since this Section has come into force and it states that the Board shall exercise this power only with the consent of the company by special resolution.

SACHIN KUMAR GUPTA

32 Points Joined August 2011

Form 23 still not updated on mca/21 website so how can one file the same for borrowing power resolution as its form requirs every attachment as per previous act.