What Is the Notwithstanding Clause? Explain the Controversy That Surrounds

question 15

Essay

What is the notwithstanding clause? Explain the controversy that surrounds this section of the charter.

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Definitions:

Spontaneously Generated Funds

Internal funds generated by a company's operations without the need for external financing.

Retained Earnings

The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.

Operational Funds

Money that is available for daily business activities, including salaries and maintenance, ensuring smooth operations.

Full Capacity Sales

Full capacity sales refer to the maximum sales level that a company can attain with its current production capacity and resources, without additional investment.