A Ltd with turnover of 100 lakhs Contributed 10 Lakh to the Flower Hand Broom Political Party T...........

Companies Act-Phase (I & II) Board-powersandMeetings

A Ltd. with turnover of 100 lakhs Contributed 10 Lakh to the Flower Hand Broom Political Party. The contribution was consented through a BOD resolution . Some members of the Company objected that Company’s consent for the same shall have been obtained. Is the Contribution valid in light of Companies Act, 2013

Yes, the contribution is valid as no consent of the Company at GM is required if amount is <= 10% of Turnover

No, the contribution is not valid as the Company’s consent at GM is required if the amount of contribution is >= 10% of Turnover

Yes, the contribution is valid as the Act does not require the Company’s consent but only the BOD resolution approving the same

No, the contribution is invalid as there can be no contribution to any Political Party

छोटे Courses बड़े Results

Master Board-powersandMeetings

Prepare through Micro-courses

Try Now

Explanation:

In some urgent matters, it may not be possible to wait till the next meeting of Board or its Committee. In such case, it is permissible to pass a resolution by circulation- Section 175.
The Act requires certain business to be approved only at Meetings of the Board. However, other business that requires urgent decisions can be approved by means of Resolutions passed by circulation. Resolutions passed by circulation are deemed to be passed at a duly convened Meeting of the Board and have equal authority.

Sec 181 (2) Provided that a company may make contributions through any instrument, issued pursuant to any scheme notified under any law for the time being in force, for contribution to the political parties.]