Section 378ZH: Donation or subscription by Producer Company
This section allows Producer Companies to make donations or subscriptions for social and economic welfare or mutual assistance, with certain restrictions and limits.
The section, clause by clause
What the section says
In plain terms
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:
provisoProvided 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:
provisoProvided 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.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.