HELLO,
I HAVE A URGENT QUERY. MY COMPANY HAS GIVEN DONATION 4-5 YEARS BACK SOON AFTER ITS INCORPORATION FOR TAX PURPOSE . IT WAS FACE LOSS THEN. NOW IT WAS NOTICED THAT SECTION 293(1)(e) IS ATTRACTED. WHAT IS THE SOLUTION FOR IT BECAUSE THE CALCULATIONS ARE IN LOSS?
YOU EACH SUGGESTION IS IMPORTANT AND APPRECIATING FOR ME.
REGARDS,
PRIYANKA
NO ONE HAVE THE ANSWER.............I M WAITING
:) Sec 293 of Companies act prohibits the board of directors of a PUBLIC Co.from giving donation in excess of Rs.50000/- or 5% of avg. n/p of the preceeding 3 f.ys - which ever higher.
Hence,
its a sure case of ulta virus - when co. does any act beyond its powers.
in the given case, Acts ultra virus the directors- they can be ratified by shareholders in a general meeting. :)
THAT DONATION WAS GIVEN U/S 80G IN THE YEAR 2006. CAN IT BE RATIFIED NOW? IF YES THEN HOW? PLZ SUGGEST.
no it cannot be ratified and that donation is not allowed as per section 293 because 3 years are not elaped from commencement of business, if donation is given then it is violated provisions of section 293.
CAclubindia
