MCA Imposes Penalty on Company and Directors for Loan Default and Violation of Section 180(1)(c)

MCA (Ministry of Corporate Affairs) has imposed a penalty on a company and its directors for loan default and violation of Section 180(1)(c) of the Companies Act. Section 180(1)(c) pertains to restrictions on the powers of the Board to borrow money. The penalty indicates the MCA's strict enforcement of corporate compliance and the responsibilities of directors in adhering to the borrowing limits and procedures outlined in the Companies Act, especially concerning financial prudence and shareholder interests.