Power to borrow moneys otherwise than debenture u/s 292

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Dharmendra kumar

201 Points Joined August 2008

Hi freinds! pls advice, a company wants to take an asset on finance lease from another compnay, whether lessee company is required to follow provisions of sec 292 for this arrangement? Is Lesee Co. required to pass resolution under sec 292? 'Certain powers to be exercised by Board only at meeting'- Sec 292.

Regards

Replies (1)

HAREN PAREKH

HEAD FINANACE

24 Points Joined December 2008

Yes. Borrowing resolution is required. Finance lease is like same as hire purchase and it amounts to borrowing by a company and hence resolution is required