Section 838 CAMA 2020

Section 838 Companies and Allied Matters Act is about Application of income and property. It is under Chapter 3 (Council, powers, income and property) of the Act.

(1) The income and property of a body or association whose trustees are incorporated under this Part of this Act shall be applied solely towards—

(a) the promotion of the objects of the body as set forth in its constitution; and

(b) no portion from it shall be paid or transferred directly or indirectly, byway of dividend, bonus, or otherwise by way of profit to any of the members of the association.

(2) Nothing in subsection (1) (b) shall prevent the payment, in good faith, of reasonable and proper remuneration to an officer or servant of the body in return for any service actually rendered to the body or association:

Provided that—

(a) with the exception of ex-officio members of the governing council,no member of a council or governing body shall be appointed to any salariedoffice of the body or any office of the body paid by fees ; and

(b) no remuneration or other benefit in money or money’s worth shall begiven by the body to any member of such council or governing body, except repayment of out-of-pocket expenses, reasonable rent for premises demised or let to the body or reasonable fee for services rendered.

(3) A person who knowingly acts or joins in acting in contravention of this section, he is liable to refund such income or property so misapplied to theassociation.