Powers of the Board_Section 179

[Yamini Lodha]

Query pertaining to section 179 of CA 2013

Section 179(3) provides for BOD powers only to be exercised by means of resolution passed at a meeting of the board; namely:-

(d) to borrow monies

(e) to invest funds of the company

 (f) to grant loans or give guarantee or provide security in respect of loans

 

Explanation under the said section provides as follows:

 

Explanation II.—In respect of dealings between a company and its bankers, the exercise by the company of the power specified in clause (d) shall mean the arrangement made by the company with its bankers for the borrowing of money by way of overdraft or cash credit or otherwise and not the actual day-to-day operation on overdraft, cash credit or other accounts by means of which the arrangement so made is actually availed of.

 

Further, section 117 provides that- A copy of every resolution or any agreement, in respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed, shall be filed with the Registrar within thirty days of the passing.

 

According to 117(3) (g) resolutions passed in pursuance of sub-section (3) of section 179.

 

Query : Whether, the board resolution passed for availing the Bank Guarantee to be furnished before court be covered u/s  179(3)(d) ?

 

Whether pledging of securities against BG will get covered under 179(3)(f) ?

 

Whether the investments of any sought shall be covered under section 179(3)(e)? 

Since, the power to invest can be delegated to a Committee. In that event, only the resolution so delegating  the powers would attract 179(3)(e) and only the said resolution can be filed instead of every investment?

Regards

YAMINI LODHA
ACS,LLB

[Yamini Lodha]

Hello Members,

I have posted a query for the first time yesterday. It appears there are 19 views on the same. 

I am unable to view the same. Please guide how can I check the views on my post.

Regards

[CS Simranjeet Singh]

you have to log out first from ur gmail acct.. and then open homepage of csmysore.. you will be able to see views for your query then

 

 

Regards,

Simranjeet Singh

Associate Company Secretary

"To know, is to know that you know nothing. that is the meaning of true knowledge."

 

   

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[DK]

FYI - 'Views' are nothing but 'Times', your query is 'viewed' or 'seen' or 'read' by people.

You only need to look for 'Reply / Post' for your 'Query' and they may be available for you.

Thanks.