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?
No, Well Ltd. cannot contribute 60,000 in 2017-2018 as company suffered losses in 2015-2016.
No, board of directors are not authorized to contribute to bona-fide charitable & other funds.
No, Permission of company in GM be required for contribution to bona-fide charitable & other funds
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.