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    Question

    According to the provisions as laid down under the

    Companies Act, can a Producer Company make a donation or subscription without any formal approval?
    A Yes, donations can be made without any approval Correct Answer Incorrect Answer
    B Yes, donations can be made only for charitable purposes Correct Answer Incorrect Answer
    C No, donations can only be made by the Board of Directors Correct Answer Incorrect Answer
    D No, special resolution approval is mandatory for donations or subscriptions Correct Answer Incorrect Answer

    Solution

    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 of— (a) promoting the social and economic welfare of Producer Members or producers or general public; or (b) promoting the mutual assistance principles.

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