378ZH Companies Act 2013 - Donation or subscription by Producer Company

Section 378ZH of Indian Companies Act 2013 "Donation or subscription by Producer Company"

A Producer Company may, by special resolution, make donation or subscription to any institution or individual for the purposes of--

(a) promoting the social and economic welfare of Producer Members or producers or general public; or

(b) promoting the mutual assistance principles:

Provided 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:

Provided 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.
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1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).