Can a Limited Company reimburse the expenses incurred by the Son of MD??? The Expenses were for official work.
The Son of the MD is not on the payroll of the Company. Does it attract any of the sections of the Companies Act.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 27 June 2009
Even if the MD's son is not on pay roll of the company, it will depend upon what capacity has he incurred the expenditure for the company. However, in general terms, there is nothing that can deny the copmpany to reimburse the expenditure to any person who has incurred in on the company's behalf. May it be the son of the MD or even the Chairman.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 27 June 2009
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