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.

As per Section 182(1) of the Companies Act, 2013 the contribution must be authorised by board in its meeting by resolution and such resolution shall be deemed to be the justification in law for making of such contribution. As per Section 182(3A) of the Companies Act, 2013, further, contribution under this section shall not be made except by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account. Accordingly, the chairman cannot direct the payment to be made unless he is duly authorised by a Board resolution passed at a meeting and the payment is to be made through account payee cheque/Bank Draft or through electronic clearing system only.