19 July 2013
Whether a company have to take approval from shareholders if it want to make contribution in political party an amount exceeding the limit as specified in the section,that is 5% of the average net profit for last 3 financial years. Provided the Co.is not a Govt. co or co. in existence for less than 3 financial years.
Government Companies and Companies which have been in existence for less than three financial years can not make any contribution to politically party or for any political purpose to any person.
23 July 2013
Hi! I want to know that any company other than Govt. company which has been in existence for more than 3 years can make contribution to any political party in excess of 5% of average net profit for last 3 financial years?
23 July 2013
This section does not empower any company to make any contribution to any political party or for any political purpose, to any individual or body, in the absence of provisions to that effect in the 'objects' clause of its Memorandum of Association. Source: Letter No. 8/16(1)/61-PR, dated 9-5-1961
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