A Ltd made a contribution of Rs 100000 to political party but did not follow the Sec 182 of Companie...........

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

A. Ltd made a contribution of Rs 100000/- to political party but did not follow the Sec 182 of Companies Act 2013. What shall be the punishment for such contravention imposed on the

company?

5x the amount

10x the amount

15x the amount

No penalty on the Co.

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Explanation:

According to Sec 182 (4) If a company makes any contribution in contravention of the provisions of this section, the company shall be punishable with fine which may extend to five times the amount so contributed and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to five times the amount so contributed.

Explanation.—For the purposes of this section, “political party” means a political party registered under section 29A of the Representation of the People Act, 1951.