Board of directors of Well Ltd., wants to contribute 60,000 to a charitable organization during FY 2017-2018. During FY 2015-2016, company suffered losses. directors are contemplating to contribute said amount in spite of losses. In this connection, state whether directors can do so?

  • A

    No, Well Ltd. cannot contribute 60,000 in 2017-2018 as company suffered losses in 2015-2016.

  • B

    No, board of directors are not authorized to contribute to bona-fide charitable & other funds.

  • C

    No, Permission of company in GM be required for contribution to bona-fide charitable & other funds

  • D

    Yes, Well Ltd. Can contribute 60,000 to a charitable organization in-spite of losses in 2015- 2016 provided it is to a bona-fide charitable fund.