Draft Board Resolution for Inter-corporate Loans & Investment in Excess of Prescribed Limits

Board-Resolution-for-Inter-corporate-Loans-&-Investment-in-Excess-of-Prescribed-Limits

As per the provisions of Section 186(2) of Companies Act, 2013 no company shall directly or indirectly —
(a)  give any loan to any person or other body corporate;
(b) give any guarantee or provide security in connection with a loan to any other body corporate or person; and
(c) acquire by way of subscription, purchase or otherwise, the securities of any other body corporate, exceeding sixty percent of its paid-up share capital, free reserves and securities premium account or one hundred percent of its free reserves and securities premium account, whichever is more.

Where the giving of any loan or guarantee or providing any security or the acquisition exceeds the limits specified in Section 186(2), prior approval by means of a special resolution passed at a general meeting shall be necessary.

Draft Board Resolution for Inter-corporate Loans & Investment in Excess of Prescribed Limits

RESOLVED THAT pursuant to the provisions of section 186 of the Companies act 2013 (as amended or re-enacted from time to time) read with  rule no 11  & 13 the Companies (Meeting of Board and its Powers) Rules, 2014 and subject to the approval of shareholders in general meeting and subject to such approvals, consents, sanctions and permissions of the appropriate authorities, departments or bodies as may be necessary, the consent be and is hereby accorded to grant loans or make investment or provide security or guarantee in for an amount(s) exceeding 60% of paid-up capital , free reserves and securities premium account or 100% of free reserves and securities premium account but not exceeding Rs ………., on such terms and conditions as may be decided by the Board  from time to time.

RESOLVED FURTHER THAT pursuant to rule no 12 of the Companies (Meeting of Board and its Powers) Rules, 2014 and section 117 of the Companies Act 2013 (as amended or re-enacted from time to time) read with  rule no 24 of the Companies (Management and Administration) Rules 2014, Mr./Ms. ……………….. [Name of person], director/company secretary of the Company be and is hereby authorized to making necessary entries in the Register of Investment , authenticate it and file form no MGT-14 with the Registrar of Companies within the prescribed time and fees.

RESOLVED FURTHER THAT Mr./Ms. …………….. [Name of Director], director of the Company, be and is hereby authorized to take such steps as may be necessary for obtaining approvals, statutory, contractual or otherwise, in relation to the above and to settle all matters arising out of and incidental thereto and sign and execute all deeds, applications, documents and writings that may be required, on behalf of the Company and generally to do all acts, deeds and things that may be necessary, proper, expedient or incidental for the purpose of giving effect to the aforesaid Resolution.
Previous
Next Post »