Multiple choice

The borrowing powers of Board of Directors of a public company are given by _____ through _______.

  1. Registrar of Companies, Certificate of Commencement of Business

  2. Shareholders, Articles of Association

  3. Registrar of Companies, Articles of Association

  4. Shareholders, Memorandum of Association

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Restrictions on borrowing power: A public company can borrow only after the receipt of Commencement Certificate. [Section 149(1)]. But a private company can borrow immediately after the incorporation.