Temporary loans exempt from statutory borrowing limits, while non temporary loans must respect capital and reserve ceilings or secure shareholder consent. Section 293(1)(d) does not constrain the board's power to raise temporary loans as defined in Explanation II, which are not subject to the statutory ceiling. Non temporary borrowings must not make the aggregate borrowed exceed the company's paid up capital and free reserves unless authorised by general meeting; loans raised to finance capital expenditure are non temporary and fall within the ceiling.
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.
Temporary loans exempt from statutory borrowing limits, while non temporary loans must respect capital and reserve ceilings or secure shareholder consent.
Section 293(1)(d) does not constrain the board's power to raise temporary loans as defined in Explanation II, which are not subject to the statutory ceiling. Non temporary borrowings must not make the aggregate borrowed exceed the company's paid up capital and free reserves unless authorised by general meeting; loans raised to finance capital expenditure are non temporary and fall within the ceiling.
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