Company to contribute to bona fide and charitable funds, etc. (Section 181 of the Companies Act, 2013) :

Section 181 of the Companies Act, 2013 came into force on 12th September, 2013 which provides for Company to contribute to bona fide and charitable funds, etc. According to this section:

(i) The Board of Directors of a company may contribute to bona fide charitable and other funds.

(ii) 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, exceeds five per cent of its average net profits for the three immediately preceding financial years.