umaa's legal clinic (simple solutions for complex legal issues) (165 Points)
01 January 2009Dear friends,
A Public Limited company listed in both stock exchanges wants to borrow money in excess to its aggregate of the paid up share capital and its free reserves. Inorder to do that it is seeking shareholders consent to pass a resolution giving the authority to the Board of Directors. What is the procedure to follow?
Muralidharan
(Self Employed)
(1034 Points)
Replied 02 January 2009
Approval of Members has to be obtained under Section 293(1)(d) and 293(1)(a) of the Companies Act, 1956, for borrowing money in excess of paid-up capitla and free reserves. Form 23 has to be filed with ROC within 30 days of passing the resolution.
Murali
CAclubindia
