Kuku, CFO of a company intends to make contribution to a political party as per details shown below: Name of the political party Amount to be contributed (Rs. in crore) Average net profit during the three immediately pre
CS Executive · Company Law · PYQS · December 2022
Kuku, CFO of a company intends to make contribution to a political party as per details shown below: Name of the political party Amount to be contributed (Rs. in crore) Average net profit during the three immediately preceding financial year (Rs. in crore) Manner in which amount will be transferred Hamara Jag 7.25 140 Bearer cheque Sovereign Party 9.9 RTGS Female front party 13 Account payee bank draft Referring to the provisions of the Companies Act, 2013 advise Kuku, (ii) Specify the penalty for which the company may be liable in case of violations in making contribution to the political parties.
Answer & Explanation:
If the contribution is in contravention of the provisions of this section, the company shall be punishable for an amount of which may extend to five times of the amount so contributed and every officer who is in default shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to five times of the amount so contributed.
Topics: Political Contributions
Related Questions in this Topic
- Kuku, CFO of a company intends to make contribution to a political party as per details shown below: Name of the pol...
- Would your answer be different, if DEF Ltd. is a "Government Company" and donation is given by an "account payee cheque"...
- What is the limit on the maximum amount that can be contributed by a company to a political party?
- DEF Ltd. has made profit for last 3 consecutive financial years as under : Year | ₹ in Crore 2017-18 | 100 2016-17 | 150...
- In the light of provisions of relevant Secretarial Standard state if the minute book can be in the custody of a senior o...