Amended and updated notes on section 181 of Companies Act 2013. Detail discussion on provisions and rules related to company to contribute to bona fide and charitable funds, etc.
Chapter XII (Sections 173–195) of the Companies Act, 2013 (CA 2013) deals with the provisions related to meetings of board and its powers. Section 181 of CA 2013 provides for company to contribute to bona fide and charitable funds, etc.
Recently, we have discussed in detail section 180 (Restrictions on powers of Board) of CA 2013. Today, we learn the provisions of section 181 of Companies Act 2013.
The provisions of section 181 are effective from 12-Sept-2013. You may refer Notification No. S.O. 2754(E) issued dated 12-09-2013. In this article, you will learn detail of the provisions of section 181 of 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. | XII |
| Chapter Name | Meetings of Board and its Powers |
| Section No. | 181 |
| Section Name | Company to contribute to bona fide and charitable funds, etc. |
| Monthly Updated Edition | Company Law PDF |
Section 181 of Companies Act 2013: Company to contribute to bona fide and charitable funds, etc.
Section 181 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
The Board of Directors of a company may contribute to bona fide charitable and other funds:
Provided that prior permission of the company in general meeting shall be required for such contribution in case any amount the aggregate of which, in any financial year, exceed five per cent of its average net profits for the three immediately preceding financial years.