Friday, August 01, 2008

Companies Act_Practical Problems_28

The Board of Directors of XYZ Ltd. has agreed in principle to grant loan worth Rs. 38 lakhs to MNC Ltd. on the basis of the following information.

Advise XYZ Ltd. about the requirements to be complied with under the Companies Act, 1956 for the proposed inter-corporate loan to MNC Ltd.
(i) Authorised share capital Rs. 1,00,00,000
(ii) Issued, subscribed and paid up capital Rs. 50,00,000
(iii) Free reserves Rs. 10,00,000

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