what is the maximum amount can be payable by public co to charitable trust???
SANGEETHA CHINNASAMY (CS Professional Student Cum Trainee) (69 Points)
08 August 2012what is the maximum amount can be payable by public co to charitable trust???
Sumit Jaiswal
(Company Secretary)
(818 Points)
Replied 08 August 2012
I reproduce Section 293(1)(e) of the Companies Act.
293 (1) The Board of directors of a public company, or of a private company which is a subsidiary of a public company, shall not, except with the consent of such public company or subsidiary in general meeting-
(e) contribute, after the commencement of this Act, to charitable and other funds not directly relating to the business of the company or the welfare of its employees, any amounts the aggregate of which will, in any financial year, exceed fifty thousand rupees, or five per cent, of its average net profits as determined in accordance with the provisions of sections 349 and 350 during the three financial years immediately preceding, whichever is greater.
I hope this clears your doubt.
SANGEETHA CHINNASAMY
(CS Professional Student Cum Trainee)
(69 Points)
Replied 08 August 2012
thk u sir
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