372a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2013 Can Board of public limited Company (unlisted) pass resolution u/s 372A with blanket approval (in case wherein limits are not exceeded/crossed).

Ajay Mishra

Ajay Mishra (Expert)
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21 August 2013 hi

Yes, you can take a blanket approval for making investment/loan/guarantee up to Rs...............

The amount is mandatory to mention up to which you are making/giving loan/guarantee.

Ajay Mishra

Ajay Mishra (Expert)
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21 August 2013
The board was informed that a request has been received to make loan (s) and/or give guarantee(s)/provide any security(ies) in connection with loan(s) made to and/or acquire by way of subscription, purchase or otherwise the securities by a sum not exceeding to Rs. _________ (Amount in words) in aggregate as mentioned against it in one or more tranches to meet their business requirement. The board was further informed that if approved, the making of loan to this company would attract the provisions of Section 372A of the companies Act, 1956.The Board discussed consider the same and passed the following resolution :

“RESOLVED THAT subject to the approval of the shareholders of the Company and pursuant to the provisions of section 372A and other applicable provisions if any of the Companies act 1956, (including any statutory modification or re-enactment thereof for the time being in force) and subject to such approvals, consents, sanctions and permissions of the appropriate authorities, departments or bodies as may be necessary, the Company be and is hereby authorized to grant loans of such amount(s) as mentioned in the understated Company from time to time, on such terms and conditions as may be decided from time to time notwithstanding, that the loans made may exceed the limits prescribed under the said section.”

“RESOLVED FURTHER THAT the aggregate of such loans made in one or more trenches as stated hereunder shall not exceed the amount of Rs. _________ (Amount in words) over and above the limit prescribed under Section 372A of the Companies Act, 1956.”

“RESOLVED FURTHER THAT (Name of the persons(s) authorized) be and are hereby severally authorized to take such steps as may be necessary for obtaining approvals, statutory, contractual or otherwise, in relation to the above and to settle all matters arising out of and incidental thereto and sign and execute all deeds, applications, documents and writings that may be required, on behalf of the Company and generally to do all acts, deeds and things that may be necessary, proper, expedient or incidental for the purpose of giving effect to the aforesaid Resolution.”

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Ankur Garg

Ankur Garg (Expert)
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22 August 2013 Blanket approval by board is not advisable at all. If possible mention specific limit in board resolution. Blanket approval may be objected at a later date.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 Thank you sir