Chapter XII - Meetings of Board and Its Powers
Section 183
Section 183: power of the Board and others to contribute to the National Defence Fund
Section 183 lets a company give to the National Defence Fund, or any other fund approved by the Central Government for national defence, without the limits and conditions that apply to other donations.
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Need advice on Section 183?
This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Board of Directors of any company or any person or authority exercising the powers of the Board of Directors of a company, or of the company in general meeting, may, notwithstanding anything contained in sections 180, 181 and section 182 or any other provision of this Act or in the memorandum, articles or any other instrument relating to the company, contribute such amount as it thinks fit to the National Defence Fund or any other Fund approved by the Central Government for the purpose of national defence. (2) Every company shall disclose in its profits and loss account the total amount or amounts contributed by it to the Fund referred to in sub-section (1) during the financial year to which the amount relates.
Introduction
The Board of Directors, any person or authority exercising the Board’s powers, or the company in general meeting may contribute such amount as it thinks fit. This applies notwithstanding sections 180, 181 and 182, any other provision of the Act, and the memorandum, articles or any other instrument of the company.
Sub-section (2) requires the total contributed to be disclosed in the profit and loss account for the financial year. Section 183 commenced on 12 September 2013 under S.O. 2754(E). The India Code shows no amendment, and its text matches the 2013 Gazette.
Key takeaways
No cap
The amount is whatever the Board or general meeting thinks fit.
Overrides other limits
Sections 180, 181 and 182, other provisions of the Act and the company’s own constitution do not restrict it.
Only defence funds
The National Defence Fund or another fund approved by the Central Government for national defence.
Disclosure
The total amount or amounts contributed in the year must be disclosed in the profit and loss account.
Who may decide
The Board of Directors, any person or authority exercising the Board’s powers, or the company in general meeting may make the contribution. No special resolution or shareholder approval is required by section 183 itself.
What it overrides
The contribution may be made notwithstanding section 180 (restrictions on Board powers), section 181 (limit on charitable contributions without member approval) and section 182 (political contributions), any other provision of the Act, and the memorandum, articles or any other instrument relating to the company.
Eligible funds
Only the National Defence Fund or any other fund approved by the Central Government for the purpose of national defence qualifies. A donation to any other charity remains subject to section 181.
Practical preparation
Confirm the recipient is the National Defence Fund or a fund approved by the Central Government for national defence; record the Board or general meeting decision; keep the receipt; disclose the total amount contributed in the profit and loss account for the year.
Exemption notifications issued under section 462 can modify how some provisions apply to particular classes of companies (for example private, Government, Section 8 or Nidhi companies); check whether any applies to your company before relying on this guide.
Practical checklist
Do
- Check that the fund is approved for national defence before relying on section 183.
- Disclose the total in the profit and loss account.
Avoid
- Do not use section 183 for general charitable donations; section 181 applies to those.
Illustrative example
Hypothetical: a Board-approved defence fund contribution
A company wants to give a large sum to the National Defence Fund in a year when its other donations have already used up the section 181 limit.
Decision
The Board approves the contribution under section 183, which is not subject to section 181.
Payment
The company pays the National Defence Fund and keeps the receipt.
Disclosure
The amount is disclosed in the profit and loss account for that financial year.
Outcome
- The contribution is valid without member approval, provided it is disclosed.
Glossary
- National Defence Fund
- The fund named in section 183(1); other funds qualify only if approved by the Central Government for national defence.
- Profit and loss account
- The statement of profit and loss forming part of the financial statements, where the contribution must be disclosed.
Frequently asked questions
Does the five per cent. limit in section 181 apply?
No. Section 183 applies notwithstanding sections 180, 181 and 182.
Who can approve the contribution?
The Board, any person or authority exercising the Board’s powers, or the company in general meeting.
Need help applying this provision to your situation?
Contact BizeneedLast updated 12 October 2026