XL Ltd. is a Listed Company and the BOD of such Company wants to pay Rent of Rs. 1 Lac per month to wife of CMD of the Company for use of place as office premises.
As per Comps Act, 2013 in case of Listed Company the Company is require to take prior approval of the BODs in case of Sec 188(1)(d) where 10% of Turnover or Rs. 50 Crores whichevre is lower.
But in our case the Listed Company is a loss making Company so I have a query that even then the Company is require to take prior approval of the Shareholders?
Regards
Shilpa
CAclubindia
