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Within the limits set by section 180, how is a company's power to borrow money exercised under section 179(3)(d) of the Companies Act, 2013?

Question and options

Within the limits set by section 180, how is a company's power to borrow money exercised under section 179(3)(d) of the Companies Act, 2013?

  1. By the Board, by resolution passed at a Board meeting

  2. By the members, by special resolution

  3. By the Board, by resolution passed by circulation

  4. By the members, by ordinary resolution

Answer and explanation

Correct answer: A - By the Board, by resolution passed at a Board meeting

Section 179(3)(d) of the Companies Act, 2013 lists borrowing among the powers the Board must exercise by resolution passed at its meetings, so a resolution by circulation is not enough. A special resolution of the members is needed only to borrow beyond the section 180(1)(c) limit.

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