Report No. 248

58. Companies (Donations to National Funds) Act, Act 54 of 1951

Category: Corporate Laws

Recommendation: Repeal

This Act enable companies to make donations to certain national funds, or any other Central Government- approved charitable Funds. The 159th Law Commission Report recommended that this Act be repealed after incorporating relevant changes under the Companies Act, 1956.

With the enactment of Companies Act, 2013, Section 135 (Corporate Social Responsibility) read with Schedule VII imposes a mandatory duty on companies to contribute a specified percentage of their profits for a social and charitable purpose. Hence, the purpose of this Act has been subsumed by the 2013 Act. In July, 2014, the Ministry of Corporate Affairs confirmed that the relevant provisions of this Act has already been incorporated in the new Companies Act, 2013. This Act is therefore redundant.