Many finance decisions need board-level approval, not just founder or CFO approval. Section 179 is a key reference point for decisions that should be elevated to the Board.
Section 179 deals with powers of the Board. For finance teams, it is the starting point to identify decisions that require board approval rather than mere management approval.
| Decision area | Board-control reason |
|---|---|
| Borrowing money | Often requires board authorisation and limits review. |
| Investing funds | Connects with Section 186 and investment policy. |
| Granting loans/guarantees/security | May need board approval and section-specific compliance. |
| Approving financial statements and board report | Core annual board function. |
| Issue of securities | Connects with allotment, PAS-3 and MGT-14 controls. |
This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.
It deals with powers of the Board.
It avoids executing transactions that need board approval without proper resolution.
Delegation should be checked against the Act, rules, articles and board authorisations.