Sale of an asset

hi, can anyone tell me that is it necessary for the board of directors to pass a resolution for sale of an asset? if yes, then please let me know the provisions where it is mentioned to do so.

 

Regards,

Varad

Replies (5)

if asset has materail value then yes

As per Sec 293 (1) of the Companies Act, 1956, the Board cannot do certain acts without approval of the members in general meeting. However, as per Sec 293 (2) (b) of the Act, any sale or lease of any property of the Company in the ordinary course of business does not require the approval of the members (in GM). Please check your case in the light of the above provisions and take decision accordingly. Regards DS

thanks a lot valji and ds for your answers, but my question is that does board resolution needs to be passed for selling an asset or not?

This has been answered.

In the first case (i.e.293(1), obviously Board Resn is must and and for the second case [i.e.293 (2) (b)], Board Resn is not required.

Hope this clarifies.

Reagrds

DS

 

i am agree with above

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