Delegation Of Powers

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sanjay srivastava (Querist)
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10 April 2010 Dear my querry is that

can the board delegate it borrowing powers to a single director in a public company?

Regards
sanjay srivastava

Jagruti (CS)

Jagruti (CS) (Expert)
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10 April 2010 Yes, Board can delegate.For that you need to pass Board resolution stating the same with maximum amount upto which he can borrow on behalf of Company.

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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10 April 2010 The maximum limit should not exceed the limit specified u/s.293(1)(d). Otherwise members meeting (EOGM) is essential.

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Ankur Garg

Ankur Garg (Expert)
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10 April 2010 Yes the delegation is valid as it is specifically allowed by proviso to section 292(1) subject to the conditions mentioned in section 292(2).

I would request you to go through section 292 of companies act, 1956 for removal of doubts.

Regards