Companies Act, 2013

Contribution to Political Party by a Corporate Body

Aakanksha Singhal Aakanksha Singhal
Aakanksha Singhal

Published on: Sep 14, 2021

Khushboo Sharma
Khushboo Sharma

Updated on: Aug 18, 2023

(7 Rating)


Section 182 of the Companies Act, 2013 explicitly provides the provisions for Contribution any amount directly or indirectly by a company to political parties except for-

  • Government company and
  • a company who is existing for less than 03 financial years “Political party” refers to a political party registered u/s 29A of the Representation of the People Act, 1951.

Mandatory Requirements

  1. Board of director’s approval in a duly convened Board meeting.
  2. Amount of contribution to be disclosed in the Profit & Loss Account of the company.


  1. Convene a Meeting of Board of Directors [As per section 173 & SS-1]
    • Issue Notice of Board Meeting to all the Directors of Company at their addresses registered with the Company, at least 7 days before the date of Board Meeting. A shorter notice can be issued in case of urgent business.
    • Attach Agenda, Notes to Agenda and Draft Resolution with the Notice.
    • Hold a meeting of Board of Directors of the Company and pass the necessary Board Resolution
      • Directors approval for contribution to political party
      • To authorize the Director or Company Secretary to do such acts, deeds and things as may be necessary to give effect to the Board’s decision.
      • To authorize the Director or Company Secretary to sign and file requisite form and return with ROC.
    • Prepare and Circulate Draft Minutes within 15 days from the conclusion of the Board Meeting, by Hand/Speed Post/Registered Post/Courier/E-mail to all the Directors for their comments. [Refer the Procedure for Preparation and Signing of Minutes of Board Meeting]
  2. File Form MGT-14 with ROC
    File Form MGT-14 with the ROC within 30 days of passing Board Resolution by the Public Limited Companies in Board of Directors Meeting along with fee as specified in the Companies (Registration offices and fees) Rules, 2014 and with the following attachments;
    • Certified True Copies of the Board Resolution passed duly in the Board Meeting
    • Any other attachment as may be applicable
  3. Effectuate the Contribution [Section 182 of the Companies Act, 2013]
    • Pursuant to board’s approval company can contemplate to effectuate contributions to political parties by an account payee cheque/draft drawn on a bank or using electronic clearing system through a bank account.
    • Below stated amounts are capped under the purview of contributions to political parties-
      • donation/ subscription or payment to be effected by company to a person who is carrying on any activity that can reasonably be regarded as public support to such political party shall be deemed to be contribution for a political purpose
      • amount of expenditure incurred directly or indirectly by a company on advertisement in any publication, in the nature of a souvenir, brochure, tract, pamphlet or the like shall also be deemed—
        • to be a contribution to such political party, where such publication is by or on behalf of a political party
        • to be a contribution for a political purpose, in case such publication is not by or on behalf of but for the advantage of a political party.

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