Amended and updated notes on section 378ZH of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Donation or subscription by Producer Company.
Chapter XXIA PART-VI (Section 378ZE to 378ZJ) of the Companies Act 2013 (CA 2013) deals with the provisions related to finance, accounts and audits. Section 378ZH of CA 2013 provides for Donation or subscription by Producer Company.
Recently, we have discussed in detail section 378ZG (Duties of auditor under this Chapter) of CA 2013. Today, we learn the provisions of section 378ZH of the Companies Act 2013.
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government appoints the 11th February, 2021 as the date on which the provisions of section 52 of the Companies (Amendment) Act, 2020 shall come into force.
Accordingly, the provisions of section 378ZH are effective from 11th February, 2021. You may refer Notification No. S.O. 644(E) dated 11-02-2021. In this article, you will learn detail of the provisions of section 378ZH the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIA (PART-VI) |
| Chapter Name | Finance, Accounts and Audits |
| Section No. | 378ZH |
| Section Name | Donation or subscription by Producer Company |
| Monthly Updated Edition | Company Law PDF |
Section 378ZH: Donation or subscription by Producer Company
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