Loan disclosure under section 370: special resolutions must state material terms or specify clear lending limits. An analysis must accompany applications for approval under section 370, setting out loan purposes, interest rate and period, maximum loan by a single company and its proportion to paid up capital, relationship between lender and borrower, prior lending history and related remarks. If proposed lending exceeds the statutory limits requiring Central Government approval, the special resolution must either disclose material terms of each loan (borrower, amount, security, rate) or specify a clear aggregate limit; full details must be provided in the application to the Central Government/Company Law Board.
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.
Loan disclosure under section 370: special resolutions must state material terms or specify clear lending limits.
An analysis must accompany applications for approval under section 370, setting out loan purposes, interest rate and period, maximum loan by a single company and its proportion to paid up capital, relationship between lender and borrower, prior lending history and related remarks. If proposed lending exceeds the statutory limits requiring Central Government approval, the special resolution must either disclose material terms of each loan (borrower, amount, security, rate) or specify a clear aggregate limit; full details must be provided in the application to the Central Government/Company Law Board.
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