Rohit (student) 08 July 2010

293 of companies act

while passing a resolution to buy particular amount of land... what is the kind of information that has to be given to the sharehoders....

my boss has asked me to see under S.293 of the companies act and the question is this?

What is the kind of information that a shareholder has to possess to pass a resolution.( For ex- if the resolution is for buying land would it be necessary to provide them with the details as to how much and what type of land the comapny intends to buy?

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4 Replies

Shayan Khan (B.com) 09 July 2010

hi.

Sec 293 is applicable only to PUBLIC COMPANIES.

Sec 293 provides that the BOD of a public company shall not exercise the following powers EXCEPT with the consent of the shareholders.

1- Sale of Undertaking

2- Give the time for the repayment of dues by a director

3- investment of compensation received by way of compulsory acquisition of any Undertaking, Premises or properties of the undertaking.

4-Borrowing of Money

5-Charitable Contributions

Hence in your case, the Consent of shareholders is not required as the purchase of Land is not covered u/s 293 of the companies Act, 1956

CS Pooja (Company Secretary) 10 July 2010

Yes, I agree with Mr. Khan.

You just need to hold a board meeting where the Board will approve such transaction and/ or authorise any person on behalf of the Company to sign documents involved, or execute a PoA for that matter.