Corporate Law

This query is : Resolved

Megha S (Querist)
Follow

24 January 2008 The company which has been in existence for less than three financial years not to be allowed to contribute any such amount to political parties.

ex: 'A' Ltd incorporated on 2nd feb 2003. on 1st nov.2005, can the company donate amount to political parties?

i think it can.because the company was in existence for more than three financial years
(financial year 2002-2003
financial year 2003-2004
financial year 2004-2005).

is it correct.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

25 January 2008 Section 2(17)(f)of the companies Act defines Financial year (in relation to any body corporate)as the period in respect of which any profit and loss account of the body corporate (laid before it in AGM) is made up, whether that period is a year or not.
Only if your company satisfies the three year financial year requirement as stated in section 293A(1)(b),with reference to the above said definition of financial year your assumption will be correct.

If your company satisfies that requirement then compliance of section 293A will be required.

R.V.RAO

R.V.RAO (Expert)
Follow

25 January 2008 YOUR PRESUMPTIONS ARE CORRECT AND HOPE YOU HAVE LAID P&L ACCOUNT AND B/S BEFORE AGM FOR THE 3 FIN. YEARS STATED BY YOU AND OTHER TERMS OF SEC 293A ARE COMPLIED .IF SO YOU HAVE COMPLIED WITH THE LAW.
R.V.RAO

Megha S

Megha S (Querist)
Follow

25 January 2008 Thanks

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Shakthi

CA Satyen Sharma

madhuseshu yathirajam

Soumitra Patra

Vinod Patil

Subscribe Now

Corporate Law

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA