Board resolution format for a political contribution under Section 182, passed at a meeting, with banking-channel payment and the 7.5% cap as a precaution.
“RESOLVED THAT pursuant to Section 182 and other applicable provisions, if any, of the Companies Act, 2013 read with Rule 8 of the Companies (Meetings of Board and its Powers) Rules, 2014, approval of the Board be and is hereby accorded to the Company contributing a sum of ₹[●] (Rupees [●] only) to [Name of political party], a political party registered under Section 29A of the Representation of the People Act, 1951, during the financial year [●].
RESOLVED FURTHER THAT the contribution shall be made only by account payee cheque, account payee bank draft or electronic clearing through a bank account, and the Board records that the Company is not a Government company, has been in existence for not less than three financial years, and that the contribution, together with all other political contributions made by the Company during the financial year, does not exceed seven and a half per cent of its average net profits during the three immediately preceding financial years.
RESOLVED FURTHER THAT the amount contributed and the name of the political party be disclosed in the profit and loss account of the Company for the financial year [●], and 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, obtain a receipt from the political party and do all such acts, deeds and things as may be necessary for giving effect to this resolution.”
No rules under this Section yet.