Section 181 · Chapter XII, Meetings of Board and Its Powers
Company to contribute to bona fide and charitable funds, etc
📚 Law Minded summary
The Board may contribute to genuine charitable funds.
But if the total in a financial year exceeds five per cent of the company's average net profits for the three preceding years, prior permission of the members in general meeting is needed.
Section 181. Company to contribute to bona fide and charitable funds, etc
The Board of Directors of a company may contribute to bona fide charitable and other funds: Provided that prior permission of the company in general meeting shall be required for such contribution in case any amount the aggregate of which, in any financial year, exceed five per cent. of its average net profits for the three immediately preceding financial years.
All sections in Chapter XII — Meetings of Board and Its Powers