04 January 2010
As per the provisions of the companies act 1956 and the NBFC regulations whenever a loan is granted by an NBFC to any companies and or another NBFCs a resolution to that effect has to be passed so that the provisons of the companies act section 372A are not violated in short the loans granted are not beyond the powers of the board and is within the spcified limit of 60 percent of the net worth or 100 percent of the gree reserves whichever is more.
The resolution has to be passed everytime as to ensure that the amount lent is within the limit prescribed and if borrowed then also the same.
NBFCs are not exempt from any such provisions..
Moreover the power to lend cannot be delegated to any of the directors as it is the Board which has to descide and not left to any independent discretion or cannot be delegated to any director.
Even as per the NBFC regulations too the auditor needs to comment of the lending and also the borrowing by the nbfc if it is within the limits laid down.
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