Spenting income of a company in charity

Q: Is it permissible for the management of a company to spend its profits in charity without seeking the permission of the shareholders?

A: Making a decision about dividends rests with the shareholder himself. Thus, if someone else spends the dividends without either power of attorney or permission from the shareholder, he should be held responsible to compensate the shareholder, even though the income is spent in charitable causes.

 

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