Shankar BA(Hons) (CS) (278 Points)
07 December 2012Hey Clubbers,
Clarify me whether a Private Limited company has to pass Board Resolution in order to avail Unsecured Loan.
If so, is it fine, if an Ordinary Resolution or a Special Resolution has to be passed.
Resolution type will be decided according to the Articles of Association. In certain cases how to identify & clasify under which type the resolution has to be passed? (I mean Ordinary or Special)
Please Guide
Shankar
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 07 December 2012
Bhai Saab,
Please note; most of the business activities performed in a public and private company should be approved/accompanied by a board resolution. In board meeting resolutions are passed by simply majority. For example out of total 5 board members, consent of 3 is must to pass the resolution.
Ordinary and special resolutions are not the subject matter of board meetings.
In shareholders meeting resolution are passed as ordinary or special resolutions. For more information about ordinary and special resolutions kindly refer section 189 of the companies Act, 1956.
Need of special resolution is given in law (Like section 100, 81(1A), 21 etc), and where nothing is mentioned in the concerned section, resolution is to be passed as ordinary resolution.
Yes a Private Limited company has to pass Board Resolution in order to avail Unsecured Loan.
I hope the above info would be of some help.
CAclubindia
