Section 182 — Prohibitions and restrictions regarding political contributions

(1) Notwithstanding
anything contained in any other provision of this Act, a company, other tha n a Government company and
a company which has been in existence for less than three financial years, may contribute any amount
directly or indirectly to any political party:
1* * * * *
Provided 2*** that no such contribution shall be made by a co mpany unless a resolution authorising
the making of such contribution is passed at a meeting of the Board of Directors and such resolution shall,
subject to the other provisions of this section, be deemed to be justification in law for the making 3*** of
the contribution authorised by it.
(2) Without prejudice to the generality of the provisions of sub-section (1),—
(a) a donation or subscription or payment caused to be given by a company on its behalf or on its
account to a person who, to its knowledge, is carrying on any activity which, at the time at which such
donation or subscription or payment was given or made, can reasonably be regarded as likely to affect
public support for apolitical party shall also be deemed to be contribution of the amount of su ch
donation, subscription or payment to such person for a political purpose;
(b) the amount of expenditure incurred, directly or indirectly, by a company on an advertisement
in any publication, being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like,
shall also be deemed,—
(i) where such publication is by or on behalf of a political party, to be a contribution of such
amount to such political party, and
(ii) where such publication is not by or on behalf of, but for the advantage of a political party,
to be a contribution for a political purpose.
4[(3) Every company shall disclose in its profit and loss account the total amount contributed by it under
this section during the financial year to which the account relates.
(3A) Notwithstanding anything contained in sub-section (1), the contribution under this section shall not
be made except by an account payee cheque drawn on a bank or an account payee bank draft or use of
electronic clearing system through a bank account:
Provided that a company may make contribution through any instrument, issued pursuant to any scheme
notified under any law for the time being in force, for contribution to the political parties.]
(4) If a company makes any contribution in contravention of the provisions of this section, the company
shall be punishable with fine which may extend to five times the amount so contributed and every officer
of the company who is in default shall be punishable with imprisonment for a term which may extend to
six months and with fine which may extend to five times the amount so contributed.