 the companies (amendment) bill, 1962(as introducbd in lol( sabra on 13111 novbmber, 1962) (as introduced in lok sabra) a bill further to amend the companies ad, 1956 be it enacted by parliament in the thirteenth year of the republic of india as follows:-1 (1) this act may be called the companies (amendment) short title and dura-act, 1962 tion s (2) it shall remain in force during the period of operation of the proclamation of emergency issued under clause (1) of article 352 of the constitution on the 26th october, 1962 j of i9s6 2 in the companies act, 1956, after section 293a, the following insertion section shall be inserted, namely: -~:n 293b 10 "293b (1) the board of directors of any company may, power of notwithstanding anything contained in sections 293 and 293a = to or in the memorandum, articles or any other instrument relating tribut~:; to the company, contribute such amount as it thinks fit to the ~cfi national national defence fund or any other fund approved by the fun~~c:tc 15 central government for the purpose of national defence (2) every company shall disclose in its profit and loss ~ceo:unt the total amount or amounts contributed by it to the fund referred to in sub-section (1), during the financial year to which the account relates" 20 ~ (1) the companies (amendment) ordinance, 1962, is hereby repeal and repealed  savina (2) notwithstanding svch repeal, anything done under, the said ordinance shall be deeme1t to have been done under this act as if this act had commenced ~ the 3rd november, 1962 section 293 (1) (e) of the companies act, 19,56, provides that the board of directors of a public company or of a private company, which is a subsidiary of a public company, may contribute to charitable and other funds not directly relating to the business of the company or the wel,fare of its employees, any amount not exceeding in aggregate, in any financial year, rupees twenty-five thousand or five per cent of its average net profits during the three financial years immediately preceding, whichever is greater if the board wishes to exceed this limit, it must obtain the consent of the' company in general meeting the general meeting of a company can be called by giving not less than 21 days' clear notice thus, the convening and holding of a general meeting of a public company necessarily entails time and expense 2 although the above-mentioned restrictions regarding contributions to charitable or other funds are not applicable to the private companie~ which are not subsidiary of public companies, it may not be possible for many such companies to· make such contributions in view of the provisions of their memorandum or articles of association 3 it was felt that companies may like to make generous contributions to the national pefence fund which has recently been created by the government to meet the emergency which has arisen as a result of china's aggression against india, uninhibited by the limits and conditions imposed by section 293 (1) (e) of the companies act, 1956, or by their memorandum or articles of association hence, an ordinance, namely, the companies (amendment) ordinance, 1962 was promulgated by the president on the 3rd november, 1962, authorizing the board of directors of companies themselves to make contributions to the national defence fund or any other fund approved by the central government for the purpose of national defence, without any limit and without obtaining the sanction of the company in general meeting 4 the present bill seeks to replace the aforesaid ordinance with the addition of a provision for the disclosure in the profit and lobs account of a cqmpany of the amounts of contributions made to the national defence fund or to any other fund approved for the purpose of national defence by the central government n kanungo new dam; the 7th nooembet', 1962 a bill further to amend the companies act, 1956 (shri nityanand kanungo,  minister of industries in  the ministry of commerce  & industry) 