Restrictions on corporate charitable contributions: shareholder consent required when donations risk exceeding statutory ceilings; undervaluation of shares discouraged. Section 293(1) requires board action to obtain shareholder consent for contributions exceeding the clause (e) ceiling; donations in the form of fully paid up shares are permissible only if the value does not exceed the prescribed ceiling and statutory requirements are complied with, and deliberate undervaluation to circumvent the ceiling is disapproved.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Restrictions on corporate charitable contributions: shareholder consent required when donations risk exceeding statutory ceilings; undervaluation of shares discouraged.
Section 293(1) requires board action to obtain shareholder consent for contributions exceeding the clause (e) ceiling; donations in the form of fully paid up shares are permissible only if the value does not exceed the prescribed ceiling and statutory requirements are complied with, and deliberate undervaluation to circumvent the ceiling is disapproved.
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