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What is the limit to the Borrowings?

April 26, 2017borrowings limit

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What is the limit to the Borrowings?

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Ans: Private Company can borrow any amountafter passing the resolution by its Board under Section 292 of The Companies Act, 1956. In case of Public Limited Company the board of directors can borrow upto an amount equal to its paid up capital and free reserves. The further borrowings are governed by the provisions of section 293 of the Companies Act, 1956 and needs the prior sanction of the members of the Company in the general meeting.