donation by corporates

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Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2010 what are the regulations for the company giving donation.......?
is there any limit specified.....?

kartik_somu

kartik_somu (Expert)
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30 March 2010 Companies Act has specified limits for political contributions. the limit is 5 % of the average net profits for the preceeding financial yares determined in accordance with sec 349 and 350.

Rasesh

Rasesh (Expert)
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30 March 2010 Section 293(1)(e) provides regulations for the same.

Section 293(1)(e) restricts the powers of the Board of Directors with regard to contributions to charitable and other funds not directly relating to the business of the company or the welfare of its employees.

1) Limits:Rs. 50,000 or Five per cent of its average net profits determined in accordance with the provisions of sections 349 and 350 during the three immediately preceding financial years, whichever is higher.

For making contributions exceeding the above limits, prior approval of members is required.

2) Compliance: Contribution shall be made by a company with resolution authorizing the making of such contribution passed at a meeting of the Board.

3) Disclosure: No post donation disclosures.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2010 thanks for ur cntributn