Dear Friends,
Pls let me know whether the following clause can be inserted in the AOA of a Private Limited Company?
"Notwithstanding Article 39 or any other relevant Article or Articles, any Director or Directors, who are desirous of bring in working capital for the execution specific projects, such Director or Directors shall, in addition to the dividend declared against their shareholdings and or any other remuneration normally eligible as other Director or Directors, be entitled to payment of interest at the applicable rates for such working capitals and share in the profit earned by such project(s) funded a mutually agreed ratio in proportion to the quantum of working capital brought in, in accordance with the a Memorandum of Understanding signed by and between such Director or Directors and the Board."
Will it violate the Companies Act, 1956??
CAclubindia
