Moon Oil Exploration Ltd. (MOEL) was incorporated on 1st June 2007 and the company made a considerable amount of profit in the past years: Financial Year Net Profit 2016-17 ₹25 Crore 2017-18 ₹10 Crore 2018-19 ₹12 Crore.
CS Executive · Company Law · PYQS · December 2019
Moon Oil Exploration Ltd. (MOEL) was incorporated on 1st June 2007 and the company made a considerable amount of profit in the past years: Financial Year Net Profit 2016-17 ₹25 Crore 2017-18 ₹10 Crore 2018-19 ₹12 Crore. In the current financial year 2019-20, the company wants to contribute to a political party. How much can it contribute ?
Answer & Explanation:
According to Section 182 of the Companies Act, 2013, a company, other than a government company and a Company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party. The Finance Act, 2017 amended section 182 of the Companies Act, 2013, accordingly the limit on the maximum amount that can be contributed by a company to a political party has been removed. Hence a company now can contribute any percentage without any limit.
Topics: Company Law
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