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    Admin posted in the group CA Final Law Discussion Group

    1 year, 3 months ago

    The Board of Directors of Very Well Ltd. wants to contribute ` 60,000 to
    a charitable organization during the financial year 2017-2018. During
    the financial year 2015-2016, the company suffered losses. The
    Directors are contemplating to contribute the said amount inspite of the
    losses. In this connection, state whether the Board of Directors can
    contribute to charitable organisation?

    (a) No, Very Well Ltd. cannot contribute ` 60,000 in 2017-2018 as
    the company suffered losses in 2015-2016.
    (b) No, the Board of Directors is not authorized to contribute to
    bonafide charitable and other funds.
    (c) No, permission of the company in general meeting shall be
    required for contribution to bonafide charitable and other funds.
    (d) Yes, Very Well Ltd. can contribute ` 60,000 to a charitable
    organization inspite of losses in 2015-2016 provided it is to a
    bonafide charitable fund.