Section 27 in The Companies (Donations To National Funds) Act, 1951
27.
/1389The Associated Chamber of Commerce and many companies who are desirous of making donations to the Sardar Vallabhbhai National Memorail Fund which has been established for carrying our objects conducive to the general welfare have approached Government to remove the legal difficulty that has arisen owing to the absence of a provision in the Articles of the Association of some companies authorising the making of such dnations. Even if the shareholders decide at the meeting to make a donation, in the absence of any authorising provision in the Articles of Association, they are not legally entitled to do so. Act XXXV of 1948 was passed for the purpose of removing this difficulty in the case of donations to the Gandhi National Memorial fund and other similar National Funds established for charitable purposes and which by reason of their national importance have been approved by the Central Government in this behalf. The donations can only be made if the general body of the companies have met at a special meeting and approved the making of such gifts by the passing of an extraordinary resolution in the manner required by Section 81 of the Indian Companies Act, 1913.As a matter of drafting the Bill has been framed as consolidating measure." - Gazette of India, 22-9-1951, Pt. II, section 2, page 656.[17th October, 1951]An Act to enable companies to make donations to National funds.Be it enacted by Parliament as follows:-
