Aggregate amount of all the loans, investments, securities and guarantees provided by ABN Private Limited stand at `75.00 lacs as on 31st March 2010 against the paid up capital of `50.00 lacs and free reserves of `60.00 lacs. For making any investments or providing any loan, security or guarantee, members’ approval was not obtained. On 15th April 2010, ABN Private Limited was converted into a public company. Is it necessary for such a company to obtain approval of members after conversion into public company as the aggregate amount of all the loans, investments, securities and guarantees exceed 60% of the company’s paid-up capital and free reserves?
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