Reimbursement of the expenses to managing director, etc., in connection with criminal cases instituted against them from funds of companies Whether permissible

Reimbursement of the expenses to managing director, etc., in connection with criminal cases instituted against them from funds of companies Whether permissible https://www.taxtmi.com/circulars?id=10809 A company is precluded from using its funds to exempt or indemnify officers or auditors against liabilities for negligence, default, misfeasance, breach of duty or breach of trust; such provisions are void. A company may, however, indemnify an officer or auditor for defence costs only where judgment is given in the officer's favour, the officer is acquitted or discharged, or court relief is granted on a statutory application, so reimbursement arises only after a favourable termination of proceedings. en-us Mon, 08 May 1972 00:00:00 +0530 Fri, 17 Jun 2011 11:50:00 +0530 TaxTMI RSS Generator Reimbursement of the expenses to managing director, etc., in connection with criminal cases instituted against them from funds of companies Whether permissible https://www.taxtmi.com/circulars?id=10809 A company is precluded from using its funds to exempt or indemnify officers or auditors against liabilities for negligence, default, misfeasance, breach of duty or breach of trust; such provisions are void. A company may, however, indemnify an officer or auditor for defence costs only where judgment is given in the officer's favour, the officer is acquitted or discharged, or court relief is granted on a statutory application, so reimbursement arises only after a favourable termination of proceedings. Circulars Companies Law Mon, 08 May 1972 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10809