Rapid Fire
Political Contribution by Newly Incorporated Firms
- 10 Apr 2024
- 1 min read
Source: TH
Despite regulations prohibiting companies less than three years old from making political contributions, recent data reveals startling purchases of electoral bonds by newly established firms in India.
- The Companies Act 2013 prohibits companies less than three years old from making political contributions, aiming to prevent shell companies from contributing funds into political parties.
- The 2017 amendment removed the cap on contributions but retained the three-year prohibition.
- Section 182 of the Companies Act 2013 outlines penalties for contravention, including fines and imprisonment for officers.
Read more: SC Strikes Down Electoral Bonds Scheme
