Spending on Corporate Social Responsibility by Companies

0
77

Magazine on CSR in India

www.csrcompetitiveness.com/

 

INDIACSR News Network

NEW DELHI: There is no provision for Corporate Social Responsibility (CSR) spending by companies in the present company law i.e. Companies Act, 1956. However, the new Companies Bill, 2012 has a provision of CSR under Clause 135 which states that every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more or net profit of rupees five crore or more during any financial year, shall constitute a CSR Committee to recommend its activities for discharging CSR in such a manner that the company would spend at least 2 per cent of its average net profits of the previous three years on CSR activities.

Giving this information in written reply to a question in the Lok Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, said that the companies will have latitude in designing project based CSR interventions. Reporting requirements etc. will be discussed with all stakeholders and defined once the Bill is enacted, the Minister said.

Comments

comments

SHARE
Previous articleSesa Goa and Sterlite Industries Merger Becomes Effective
Next articleInvestigations by the Serious Fraud Investigation Office
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in