XYZ Ltd., a foreign company, has its head office at USA. The Board of Directors (BOD) meetings are held in USA. However, the Board of Directors has delegated major powers to a committee in Kolkata and the members of this
CS Professional · Advanced Tax Laws · PYQS · December 2019
XYZ Ltd., a foreign company, has its head office at USA. The Board of Directors (BOD) meetings are held in USA. However, the Board of Directors has delegated major powers to a committee in Kolkata and the members of this committee are based in Kolkata. The Board of Directors ratified the decisions of the said committee. In the light of above, Discuss the guiding factors of POEM for Board of Directors delegating authorities to Committee.
Answer & Explanation:
Guiding factors when Board Delegating Authorities to Committee are as under: If Board of Director had delegated some or all of its major authorities to one or more committees consisting senior management, then POEM shall be at the place where: Members of executive committee are based and Where committee develops and formulate key decisions for formal approval by Board.
Topics: International Taxation
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