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Procedure for making Contribution to Charitable Funds

Companies Contributing to Charitable and other funds may do so by following the rules laid down under the Companies.

The Board of Directors of a Company may Contribute to bona fide charitable and other funds up to 5% of its Average net profits for the 3 immediately preceding financial years.

If Contribution is more than 5% prior permission of the Company in General Meeting is required.

Procedure for making Contribution to Charitable Funds :

#Notice of Board Meeting –

Draft a Notice Convening a Board Meeting along with Necessary Resolutions

#Conducting Board Meeting –

Pass Resolution regarding making contribution to the charitable funds, if Contribution is in excess of 5% of average net profits , also make necessary procedure regarding holding EGM of the Company for approval of Members.

#Notice of EGM

Send Notice of EGM to members of the Company

 #Hold EGM and Pass Ordinary Resolution

 #File form MGT-14 to ROC under Section 117 of the Companies Act, 2013

 

 

 

 

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