Restrictions on board powers require shareholder approval for major disposals, excess borrowings, and specified director benefits. The Board must obtain shareholder approval to sell or otherwise dispose of the whole or substantially the whole of an undertaking, remit or extend repayment of a director's debt (subject to a banking renewal exception), invest compulsory-acquisition compensation other than in trust securities for essential property, borrow beyond the aggregate of paid-up capital and free reserves (excluding ordinary short-term bank accommodations), or contribute to non-business charitable funds beyond prescribed limits; authorising resolutions must specify borrowing or contribution limits and bona fide purchasers and ordinary trading in property remain protected.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Restrictions on board powers require shareholder approval for major disposals, excess borrowings, and specified director benefits.
The Board must obtain shareholder approval to sell or otherwise dispose of the whole or substantially the whole of an undertaking, remit or extend repayment of a director's debt (subject to a banking renewal exception), invest compulsory-acquisition compensation other than in trust securities for essential property, borrow beyond the aggregate of paid-up capital and free reserves (excluding ordinary short-term bank accommodations), or contribute to non-business charitable funds beyond prescribed limits; authorising resolutions must specify borrowing or contribution limits and bona fide purchasers and ordinary trading in property remain protected.
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