Question

According to the provisions as laid down under the

Q: Answer- According to the provisions as laid down under the Companies Act, can a Producer Company make a don...

Section 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 ofmdash a promoting the social and economic welfare of Producer Members or producers or general public or b promoting the mutual assistance principles.

Companies Act, can a Producer Company make a donation or subscription without any formal approval?

A Yes, donations can be made without any approval

B Yes, donations can be made only for charitable purposes

C No, donations can only be made by the Board of Directors

D No, special resolution approval is mandatory for donations or subscriptions

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Solution