<h1>Companies Act 2013: Board can donate to charity, needs general meeting approval if over 5% of average profits.</h1> Section 181 of the Companies Act, 2013 allows a company's Board of Directors to contribute to charitable funds, but requires prior approval from the general meeting if the contribution exceeds five percent of the company's average net profits over the previous three years. Such contributions must be recorded in the company's accounts. The government has not received any proposals to alter this accounting practice, as stated by the Minister of State in the Ministry of Corporate Affairs, in a written response to a question in the Lok Sabha.