Section 378ZH:
Donation or subscription by Producer Company.
1[378ZH. Donation 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 donations and subscriptions 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 donation 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.]
Notes:
1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).