Report No. 255

Amendments to the Companies Act, 2013 (18 of 2013)

182. Prohibitions and restrictions regarding political contributions.- (1) Notwithstanding anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party:

Provided that the amount referred to in sub-section (1) or, as the case may be, the aggregate of the amount which may be so contributed by the company in any financial year shall not exceed seven and a half per cent of its average net profits during the three immediately preceding financial years:

$$$$$$$$$$$$$$$$$$Provided further that no such contribution shall be made by a company unless a resolution authorising the making of such contribution is passed at the annual general meeting a meeting of the Board of Directors and such resolution shall, subject to the other provisions of this section, be deemed to be justification in law for the making and the acceptance of the contribution authorised by it.