Under the Companies Act, 2017, the memorandum and articles of association are deemed to include implied borrowing powers. However, what is the primary condition for a public company having share capital to exercise this borrowing power?

Correct answer: C) It cannot exercise any borrowing power unless it is entitled to commence business.

Explanation

A public company having share capital is restricted from exercising any of its implied borrowing powers (which include mortgaging or pledging assets) until it is legally entitled to commence business.