Serious Ltd. is having three factories in Chennai. The company wants to sell one of the factory. Can the company sell its factory? Further, assuming that the company has also borrowed credit facilities from the bank, exp

According to sub-section (1)(a) of section 180 of Companies Act, 2013, the Board of Directors of a company may sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking of the company or where the company owns more than one undertaking, of the whole or substantially the whole of any of such undertakings only with the consent of the company by a special resolution. Accordingly the company may sell any of its factory with the consent of the company by a special resolution. Where the company has credit facility on creating charge on such undertaking, the company may be required to obtain a no-objection- certificate from the bank as per contractual obligation and shall also modify the charge accordingly.