7 Questions
What are some powers of a company's Board of Directors that require the company's consent through a special resolution?
Selling, leasing, or disposing of a significant part of the company's business operations; Investing compensation from mergers or acquisitions in trust securities; Borrowing money exceeding certain financial thresholds; Extending repayment terms or forgiving debts owed by directors.
What must a special resolution passed by the company specify when it comes to borrowing money?
The total amount the Board can borrow.
In what circumstances does the validity of any debt incurred beyond the borrowing limit set by the special resolution come into question?
When the lender must prove they acted in good faith and were unaware of the limit being exceeded.
What exceptions apply when a buyer purchases company assets in good faith according to the outlined powers of the Board?
In such cases, exceptions apply when the buyer purchases company assets in good faith.
What conditions can be set in the special resolution regarding the use or disposal of proceeds from transactions like selling or leasing assets?
Conditions can be set regarding the use or disposal of proceeds from such transactions.
What types of transactions may be considered part of the company's regular business, thus exempt from certain restrictions on the Board's power?
Selling or leasing assets as part of the company's regular business.
What type of approval is needed for the Board to exercise certain powers outlined in the section?
The Board can only exercise these powers with the company's consent through a special resolution.
Test your knowledge on the restrictions imposed on a company's Board of Directors as per Section 180 of the Company Law. Learn about the powers that require the company's consent through a special resolution, such as selling business operations, investing in trust securities, and borrowing money.
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