Board resolution format for donations to bona fide charitable and other funds under Section 181 within 5% of average net profits, with limit computation.
“RESOLVED THAT pursuant to Section 181 and other applicable provisions, if any, of the Companies Act, 2013 and the Articles of Association of the Company, consent of the Board be and is hereby accorded to the Company contributing a sum of ₹[●] (Rupees [●] only) to [Name of trust / society / fund], [registration details], a bona fide charitable [trust / institution / fund], for [purpose], during the financial year [●].
RESOLVED FURTHER THAT the Board records that the aggregate of this contribution and all other contributions made by the Company to bona fide charitable and other funds during the financial year [●] does not exceed five per cent of the average net profits of the Company for the three immediately preceding financial years [or the higher amount permitted by the members by ordinary resolution passed on [●]], and that no contribution beyond that limit shall be made without the prior permission of the members in general meeting.
RESOLVED FURTHER THAT any Director and/or the Chief Financial Officer and/or the Company Secretary of the Company be and is hereby severally authorised to release the contribution through banking channels, obtain a receipt and such certificates as may be required under the applicable income-tax law, and do all such acts, deeds and things as may be necessary for giving effect to this resolution.”
No rules under this Section yet.