https://www.taxtmi.com/caselaws?id=97914 The court held that agreements for payment of commission to promoters exceeding the statutory limit were void and unenforceable under Section 76 of the Companies Act, 1956. The court emphasized the legislative intent to impose strict restrictions on payments out of profits, rejecting arguments for alignment with English company law principles. The appeal was dismissed, affirming the prohibition on extravagant payments to safeguard the company's financial stability. en-us Tue, 20 Mar 1962 00:00:00 +0530 Thu, 11 Feb 2016 11:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97914 The court held that agreements for payment of commission to promoters exceeding the statutory limit were void and unenforceable under Section 76 of the Companies Act, 1956. The court emphasized the legislative intent to impose strict restrictions on payments out of profits, rejecting arguments for alignment with English company law principles. The appeal was dismissed, affirming the prohibition on extravagant payments to safeguard the company's financial stability. Case-Laws Companies Law Tue, 20 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97914