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of <h1>Companies Urged to Comply with Section 293(1)(e) on Share Donations; Avoid Under-Valuation to Bypass Legal Limits.</h1> The circular addresses the obligation of compliance with section 293(1), clause (e) of the Companies Law, concerning contributions made by companies in the form of shares rather than cash. It highlights a trend among some companies, particularly within a notable group, to donate fully paid-up shares to their own charity trusts. The circular emphasizes that while such contributions are permissible if they do not exceed the statutory ceiling and all legal requirements are met, there is concern about potential under-valuation of shares to circumvent these limits. The Department seeks to ensure adherence to statutory ceilings.
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