Question
Which of the following is/are not correct about the
electoral bond scheme: I. Earlier, no foreign company could donate to any political party under the Companies Act. II. A firm could only donate a maximum of 10% of its average 3-year net profit as political donations. III. Companies had to disclose details of their political donations in their annual statement of accounts. Which of the above statement is/are not correct?Solution
Restrictions that were done away with after the introduction of the electoral bond scheme: Statement I is correct -: Earlier, no foreign company could donate to any political party under the Companies Act Statement II is not correct -: A firm could donate a maximum of 7.5 per cent of its average 3 year net profit as political donations according to Section 182 of the Companies Act Statement III is correct -: As per the the Act, companies had to disclose details of their political donations in their annual statement of accounts. The government moved an amendment in the Finance Bill to ensure that this proviso would not be applicable to companies in case of electoral bonds.
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