Sec 372A - what is the max. limit?

The limit on Inter corporate loan is as below:-

60% of "Paid-up Share Capital & Free Reserves"

100% of Free Reserves

which ever is higher.....

The figures shall be taken from Balance Sheet.....

Originally posted by : Arvind
	The limit on Inter corporate loan is as below:- 60% of "Paid-up Share Capital & Free Reserves" 100% of Free Reserves which ever is higher.....   The figures shall be taken from Balance Sheet.....

 My question is if in case the company wants to increase the limit which was previously approved by members in GM, how much we can increase and what will be the limit?

this is overall limit..,

If company is proposing to make further Inter Corporate Loan/Advance, then analysis that limit after considering that proposal, if total is beyond the limit then GM Special Resolution is required..., refer provision in Act further...

What will be the max limit we can fix?? In our Company we have already fixed limit beyond the 60% - 100% limits..

Now we want to increase again.. what to do..

You mean you already have cross that 60-100 % limit...???

Then you need to have BR there after GM SR..., in favour of that increment in Loan & Adv to be made.....

Originally posted by : C Karthik
	What will be the max limit we can fix?? In our Company we have already fixed limit beyond the 60% - 100% limits.. Now we want to increase again.. what to do..

You just need to pass a special resolution in the General Meeting of the company. There is no max limit provided in law as it is purely left to the discretion of the management.

If your company is a listed company, please ensure that the above special resolution is obtained only through postal ballot process.

The Companies Act doesn't fix any upper limit.

Experts please correct me if I am wrong.