Lumax Auto Technologies seeks shareholder approval for loans, guarantees and securities up to ₹500 cr under Section 185, Companies Act

Regulatory 29 May 2026· ₹500 cr · Announced· ✓ Verified

Lumax Auto Technologies Limited informed the NSE that its Board, in a meeting on 29 May 2026, approved a proposal to secure shareholder approval for providing loans, guarantees and security up to ₹500 crores under Section 185 of the Companies Act, 2013. The Audit Committee had previously recommended this blanket approval, which is a standard governance practice enabling the company to deploy working capital and provide inter-company credit within a pre-approved envelope without repeated shareholder resolutions. The proposal will be tabled at the shareholders' general meeting for formal consent.

Why it mattersSection 185 advance-approval frameworks allow boards to act flexibly on inter-company credit without obtaining shareholder consent for each transaction, provided aggregate exposure remains within the pre-approved ceiling and all statutory safeguards (Audit Committee review, arm's-length pricing, full disclosure) are observed.
SectorIndustrials
Value₹500 cr
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