Section 378ZH Donation or subscription by Producer Company
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378ZH. Donation or subscription by Producer Company.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021A Producer Company may, by special resolution, make donation or subscription to any institution or individual for the purposes of—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(a) promoting the social and economic welfare of Producer Members or producers or general public; or
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(b) promoting the mutual assistance principles:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that the aggregate amount of all such donations and subscriptions in any financial year shall not exceed three per cent. of the net profit of the Producer Company in the financial year immediately preceding the financial year in which the donation or subscription was made:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided further that no Producer Company shall make directly or indirectly to any political party or for any political purpose to any person any contribution or subscription or make available any facilities including personnel or material.