Zero Motors Limited, a listed company has three manufacturing divisions: Cycle Division Motorcycle Division Electric Scooter Division. The following information is given: (Rupees in crore) Equity share capital: 300 Prefe

According to Section 180 of the Companies Act, 2013, the Board of Directors shall exercise their powers only with the consent of the members of the company by a special resolution in the following cases: To sell, lease or otherwise dispose of the whole or substantially whole of the company; To invest otherwise than in trust securities the amount of compensation received as a result of merger or amalgamation; To borrow money, where the money borrowed, together with the money already borrowed by the company will exceed aggregate of paid-up capital and free reserves. However, a board resolution is sufficient if the company wants to borrow money, where the money to be borrowed is less than the aggregate of the paid-up share capital, free reserves and securities premium. In the instant case, the money to be borrowed together with the money already borrowed as long term loans from financial institutions is rupees ₹780 Crore (480+300) and aggregate of the paid-up capital and free reserve rupees ₹1220 crore (300+120+500+300 = rupees ₹1220 crore. Hence, a special resolution is not required. Board Resolution is sufficient.