Question
The Board of Directors of a company need approval at the
company general meeting for contribution, to bona fide charitable and other funds, exceeding _________________ of its average net profits for the three immediately preceding financial years.Solution
Under section 181 of the Companies Act, the Board of Directors of a company may contribute to bona fide charitable and other funds; for contributions exceeding 5% of its average net profits for the three immediately preceding financial years, approval at company general meeting is required.
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