Sunday, 20 April 2014

(12.10.4) other Restrictions on the Borrowing Powers of the Board

The Board can exercise the following powers, inter alia, only by means of resolutions passed at Board meeting and not by the the circulation of resolution: (i) the power to issue debentures; (ii) the power to borrow money otherwise than on debentures. The Board may, however, by a resolution passed at a meeting, delegate the power in (ii) above, to any committee of directors, the managing director, the manager or any other principal officer of the company, mentioning therein the limit up to which amount can be borrowed by the delegatee. Also the Act empowers the company in general meeting to impose restrictions and conditions on the powers of the Board to issue debentures and borrow money.

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