Section 378ZH of the Companies Act, 2013: Donation or subscription by Producer Company

The Companies Act, 2013

Chapter– XXIA Producer Companies

Part- VI Finance, Accounts and Audit

1[Section 378ZH: Donation or subscription by Producer Company.

378ZH. A 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.]


1. Inserted by the Companies (Amendment) Act, 2020, w.e.f. 11.02.2021[S.O. 644(E) dated 11.02.2021].

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