04 January 2014
sir, as per provision of section 180 of companies act 2013, every company has to seek special permission from members if borrowing exceeds paid up capital , free reserves and already taken borrowings... in case of private company: 1.is there any %limit for borrowing. 2. what should be done in case the borrowing already exceeds the said limit. 3. loans from director/ related party/ inter corporate borrowings shall be included or excluded and upto what extent while calculating the limit.
04 January 2014
1. There is no such limit on borrowing in private company. For more clarity refer your articles.
2. Borrowing should not exceed the limit as this is not a new provision. It was also there in previous Act. Refer section 293(1)(d). if limit exceeds this a non compliance.
3. Inclusion of other borrowing depends on the nature and purpose of borrowing. Like they are short term or long term or temporary etc.
in case of private company section 293 was not applicable earlier ... so in new act is it necessary for all private companies to check their borrowing power before hand and pass the necessary resolution before hand or can it be done when company is further taking any new borrowing????
CAclubindia
