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Commerce · Q194

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 194

Q194

As per Articles of Association of the company the directors can borrow up to Rs. 10,000 without getting approval from the general meeting. The directors have lend Rs. 50,000 to the company without any approval of the general meeting and took debentures. The company would be liable for:

A.
50,000
B.
60,000
C.
10,000
Answer
D.
40,000

Answer: Option C

Solution

Answer: Option C
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