Board powers
RADHA RAJAGOPALAN (15 Points)
06 May 2019RADHA RAJAGOPALAN (15 Points)
06 May 2019
Shrikant
(Associate)
(350 Points)
Replied 08 May 2019
They can delegate some of their powers but not all. what kind of powers do you want a board to delegate to some other person ?
Fareeha Jabeen
(Articled Assistant)
(160 Points)
Replied 08 May 2019
Hello Radha,
Yes of course the Board of Directors can delegate their powers to other officials after passing a board resolution as per Section 179(3) of Companies Act, 2013:
"3) The Board of Directors of a company shall exercise the following powers on behalf of the company by means of resolutions passed at meetings of the Board, namely:—
(a) to make calls on shareholders in respect of money unpaid on their shares;
(b) to authorise buy-back of securities under section 68;
(c) to issue securities, including debentures, whether in or outside India;
(d) to borrow monies;
(e) to invest the funds of the company;
(f) to grant loans or give guarantee or provide security in respect of loans;
(g) to approve financial statement and the Board’s report;
(h) to diversify the business of the company;
(i) to approve amalgamation, merger or reconstruction;
(j) to take over a company or acquire a controlling or substantial stake in another company;
(k) any other matter which may be prescribed:
Provided that the Board may, by a resolution passed at a meeting, delegate to any committee of directors, the managing director, the manager or any other principal officer of the company or in the case of a branch office of the company, the principal officer of the branch office, the powers specified in clauses (d) to (f) on such conditions as it may specify."
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