Dear Professional Colleagues
Section 180(1)(c) of The Companies Act, 2013 provides that the Board of Directors of a Company shall require the consent of the Company by way of a Special resolution if it borrows money, where the money to be borrowed, together with the money already borrowed by the Company exceed the aggregate of the Paid up Share Capital and Free Reserves.
Further Sec. 2(43) defines Free Reserves as a Reserve which as per the latest Audited Balance Sheet is available for distribution as dividend.
My query is whether Securities Premium Account is considered in calculating Free Reserves of the Company for the purpose of Section 180 and what are the specific items that are considered in calculating Free Reserves?
Plz reply.
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Every success is built on the ability to do better than good enough
With Regards
GAURAV AGARWAL
Mob. No.
+(91)98306-84682