Use of cash credit limit to buy land

anita (trainee) (511 Points)

03 February 2023

Can a private limited company use it's cash credit limit sanctioned for business to purchase a land for industrial use?

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CA Rashmi Gandhi (Chartered Accountant) (83535 Points)
Replied 03 February 2023

Yes, company is allowed to use CC for land purchase

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MPR Sanjay Kumar (2777 Points)
Replied 03 February 2023

@ honourable Rashmi Gandhi mam ,could you please explain me the section 6 of companies act what actually tells us

ACT TO OVER-RIDE MEMORANDUM, ARTICLES, ETC.(b) any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be.

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