VERY URGENT: BORROWING POWER CLAUSE IN MOA & AOA OF PVT LTD COMPANY

GIRIJA NAGVEKAR

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Jan 31, 2014, 1:56:32 AM1/31/14

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Dear All,

Borrowing powers of the Company.

Is it necessary to have borrowing clause in MOA and AOA of the pvt ltd company.

In case borrowing clause in not included then it is implied that company can borrow.

The reason for this query is the financier is not willing to extend finance as the company's MOA and AOA do not have borrowing power clause.

Members views are solicited

Thanks & Regards,

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CS Girija Nagvekar

Company Secretary -in practise

BalaJi Srivastava

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Jan 31, 2014, 1:59:53 AM1/31/14

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No Sir

As a general practice the MOA should govern specifically the Borrowing Limit of the Company. I have to recently amend the MOA and AOA to increase the Borrowing Limit of the Company. Banks and FI specifically asks for this also CA 1956 and 2013 has specific provision u/s 372A and others...

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Thanks and Regards,

Balaji Srivastava
Mobile: +91 (0)997-177-2679
Email:bbala...@gmail.com

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GIRIJA NAGVEKAR

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Jan 31, 2014, 2:05:32 AM1/31/14

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Mr Balaji,

Can you please detail or forward me a copy of how the borrowing powers to be mentioned in the MOA and AOA of the company.

GIRIJA NAGVEKAR

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Jan 31, 2014, 2:26:53 AM1/31/14

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Dear All,

Kindly detail the procedure for inclusion of borrowing clause in MOA and AOA of the pvt ltd company.

Format of borrowing clause to be inserted in MOA and AOA of the pvt ltd company.

Thanks & Regards,

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