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
