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NPO

NPO being an artificial person Can, t contravenes any of its condition . Corporate veil also tells us Company is not liable for any wrong act . Tell Me . In npo if conditions is contraviened .1. WHAT LEGAL PROVISION LAW HAS PROVIDED . 2. Why is company, s license revoked because act has been carried by member . .?


Zeeyan KOKA

Zeeyan KOKA

CA Foundation

3K+

21-Aug-20 10:08

13

Answers (1)

Doctrine of Corporate veils states that company will be held liable as a whole and not it's members. However, in case of fraud, government can Pierce the corporate veils and punish the people behind the fraud. That's why, generally, unless any fraud is proved, if license conditions are not satisfied by a section 8 company or it's members/directors, the company shall be wound up/amalgamated & licence will be cancelled.


ruchi lahoti

ruchi lahoti

Moderator

21-Aug-20 14:21