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plz help_section 292(1)(c)

Mayuri Lal (officer CS) (748 Points)

28 October 2010

Dear members,

I was preparing a petition for delay of form-8 of a private limited company. in that copy of resoution as per 292(1)(c) required and in the resoution it says the borrowing shall not exceed aggregate of paid up and reserve and surpuls and which is coming to 37lakhs. an the company has made the overdraft facility of Rs. 40 lakhs.

so how to present now.. bkoz 293(1)(d) is not applicable to private company ....

please guide me

Regards,

Mayuri lal

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CS Mayur Buha (Company Secretary) (238 Points)
Replied 28 October 2010

292. Certain powers to be exercised by Board only at meeting:

c) the power to borrow moneys otherwise than on debentures;

In respect of dealings between a company and its bankers, the exercise by the company of the power specified in clause (c) of subsection (1) shall mean the arrangement made by the company with its bankers for the borrowing of money by way of overdraft or cash credit or otherwise and not the actual day to day operation on overdraft, cash credit or other accounts by means of which the arrangement so made is actually availed of.]

Every resolution delegating the power referred to in clause (c) of subsection (1) shall specify the total amount 1[outstanding at any one time] up to which moneys may be borrowed by the delegate.