CAN A COMPANY DONATES ITS WHOLE NETWORTH TO A CHARITABLE TRUST IF THE SHAREHOLDERS PASSED SPECIAL RESOLUTION FOR THE SAME ?? IS THERE ANY LIABILITY ON DIRECTORS TO RECOMMEND SUCH A DONATION WHICH IS OVER AND ABOVE THE LIMIT OF 5% OF NETPROFIT.
Menu
Question on sec 181 of companies act 2013
Replies (3)
181 limit on board 5%
prior permission in GM above it
Section 181 of the Act does not prescribe any limit for contribution to bona fide charitable and other funds. However, the limit is provided on power of Board for such contribution. It prescribes that prior permission of members in General Meeting is to be accorded when any amount the aggregate of which, in any financial year, exceed five percent of its average net profits for the three immediately preceding financial years.
Recent Threads
- Income tax act 40 A (3)
- Transmission of deceased's shares in physical form
- Shall I pay GST payment for unkonwnly cancelled in
- Error in GSTR1 filing for October 25
- Inverted Rate structure .
- Exemption to be climed
- GST TDS u/s 51 Applicability on RBI and it's subs
- Time allowed to buy another asset
- ITR not processed for the FY 2024-25
- Gift of money to my wife.
Related Threads
CAclubindia
