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Clarification with regard to section 180 of the Companies Act, 2013.
March, 27th 2014

General Circular no. 04 /2014
No. Il32l20I3- CL V (ft. File)
Government of India
Ministry of Corporate Affairs
5m Floor, 'A'Wing, Shastri Bhavan,
Dr. R P Road, New Delhi-l10001.

All Regional Directors,
All Registrar of Companies,
All the Stakeholders,

Subject: Clarlfication wlth regard to section 180 of the Companies Ac!, 2013.

This.Ministry has received many representations regarding various difficulties
arising out of implementation of section 180 of the Companies Act, 2013 with
reference to borrowings and/or creation of security, based on the basis of ordinary
resolution. The matter has been examined in the Ministry and it is hereby clarified
that the resolution passed under section 293 of the Companies Act, 1956 prior to
12.09.2013 with reference to borrowings (subject to the limits prescribed) and / or
creation of security on assets of the company will be regarded as sufficient
compliance of the requirements of section 180 of the Companies Act, 2013 for a
period of one year from the date of notification of section 180 of the Act.
Yours faithfully,

Assistant Director (Policy)
Ph. no. 23387263

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