Section 581ZH in The Companies (Amendment) Act, 2002
581ZH. Donations or subscription by Producer Company.-
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: Provided that the aggregate amount of all such donation and subscription 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 donatio or subscription was made: Provided 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.
