Company to contribute to bona fide and charitable funds, etc
Section 181 of the Companies Act, 2013 deals with company to contribute to bona fide and charitable funds, etc. The Board of Directors of a company may contribute to bona fide charitable and other funds: Provided that 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, exceed five per cent. The Act came into force on 01 Apr 2014.
The Board of Directors of a company may contribute to bona fide charitable and other funds:
Provided that 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, exceed five per cent. of its average net profits for the three immediately preceding financial years.
Section 181, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… It would appear from the judgment that the provisions of the Kerala Act which had by then come into force was not considered by the Division Bench. The Court proceeded on the basis that the Companies Act, 1956 governs the Yogam. Section 181 of the Companies Act, 1956 provided that no member shall exercise any voting right in respect of any shares registered in his name, on which any calls or other sums presently payable by him have not been paid, or in regard to which the Company has, and has exercised, any right of lien. The above Section permits …
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… It would appear from the judgment that the provisions of the Kerala Act which had by then come into force was not considered by the Division Bench. The Court proceeded on the basis that the Companies Act, 1956 governs the Yogam. Section 181 of the Companies Act, 1956 provided that no member shall exercise any voting right in respect of any shares registered in his name, on which any calls or other sums presently payable by him have not been paid, or in regard to which the Company has, and has exercised, any right of lien. The above Section permits …
Questions about Section 181
What does Section 181 of the Companies Act deal with?
Section 181 of the Companies Act is headed "Company to contribute to bona fide and charitable funds, etc". The Board of Directors of a company may contribute to bona fide charitable and other funds: Provided that 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, exceed five per cent.
How do I find court cases under Section 181 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 181, section 181 Companies Act, section 181 of the Companies Act. People searching for it also type corporation act 181. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 181 of the Companies Act, and has it changed?
2 other provisions in this corpus refer back to it.
When did Section 181 of the Companies Act come into force?
Section 181 of the Companies Act, cited as Companies Act 181, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.