Companies Act · Board Powers

Borrowing Limits and Asset Sale Under Section 180: Special Resolution Checklist

Finin2min Compliance Desk·June 2026·7 min readSECTION 180

Some finance decisions are too material for simple board approval. Section 180 restricts board powers for specified actions and requires company consent by special resolution.

What Section 180 covers

India Code Section 180 states that the Board shall exercise specified powers only with the consent of the company by special resolution, including disposal of whole/substantially whole undertaking and specified borrowing powers.

Transaction controls

TransactionControl
Borrowing beyond limitsCheck paid-up capital, free reserves and securities premium where relevant.
Sale/lease/disposal of undertakingEvaluate whether whole/substantially whole threshold is triggered.
Lender condition precedentProvide certified shareholder resolution where required.
MGT-14 implicationTrack special resolution filing under Section 117.

Evidence folder

Finin2min warning

Do not rely only on board resolution for major borrowing or asset sale. Check whether shareholder special resolution is needed.
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Official sources used

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.

FAQs

Which section restricts board powers?

Section 180 contains restrictions on powers of Board.

Is special resolution relevant?

Yes. Section 180 requires company consent by special resolution for specified powers.

Does MGT-14 matter?

Special resolutions are generally tracked for Section 117 filing review.