26 July 2013
Whether the company can make donation to charitable purpose,not directly related to the business or for the welfare of its employees, when the company is running under losses? whether any resolution has to be passed in this respect i.e approval from shareholders for making donation even though the company has made losses in the current year?
26 July 2013
1. If the entity is a private limited company, the referred section doesn't apply.
2. If it is a public limited company or a private limited company which is a subsidiary of a public limited company, referred section attracts meaning thereby, share holders approval is required if the donation > Rs.50,000/- in a financial year presuming that the company is running in loss in the preceding 3 financial year as well.
CAclubindia
