Can a company pass a resolution to allow personal travel expense of director? If yes then under which section?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 25 May 2013
As per Sec.211(2) every P&L a/c shall give a true and fair view of the profit/loss of the company. Company is a separate legal entity and hence personal expenses of directors should not be debited to company's P&L statement.
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