24 March 2012
One of our client companies have applied for loan in a bank. But the bank has objected that borrowing power clause is not present in AOA of the Company. Although the borrowing power clause is present in MOA but not in AOA.
How to prove that borrowing is not ultra vires .
Also i want to know doctrine of ultra vires is present in which section of the Companies Act.
24 March 2012
See your Artciles starting wording again. It must have reference of TABLE A. If there is nothing mention in the articles then provisions of Table apply. Even then if they say no then amend Artciles and pass resoltuion u/s 293(1)(a) and (d).
24 March 2012
Yeah we adopted the Table A. There is no provision regarding borrowing power clause in the Table A . Leave what the bankers are saying what is the actual position.
Whether loan can be taken without such provison in AOA .
CAclubindia
