Diference between Sec 372 A and 293

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Nidhi Jain

Nidhi Jain (Querist)
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25 January 2011 can any one tel me the diference between Diference between Sec 372 A and 293??????

Jayashree S Iyer

Jayashree S Iyer (Expert)
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25 January 2011 293(i)(d) deals with borrowing powers of the company beyond which the approval of the shareholders is required.

While 372A deals with making of intercorporate loans and investments by a company.

Nidhi Jain

Nidhi Jain (Querist)
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27 January 2011 Can u tell me about limit beyond which shareholder approval is required? or where i acn find it if not so prescribed????

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Jayashree S Iyer

Jayashree S Iyer (Expert)
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27 January 2011 The limits are given in the respective sections.

293 (Borrowing Powers) limit - aggregate of the paid up capital of the company and its free reserves.

372A (Investments) limit - 60% of its paid up share capital and free reserves or one hundred percent of its free reserves, whichever is more.