India CSR Network
No Result
View All Result
  • Login
  • Register
SUBSCRIBE
  • Home
  • CSR
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Environment
    • Education
    • Gender Equality
    • Health
    • Skill Development
    • No Poverty
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Articles
  • Interviews
  • Events
  • BOOKS
  • More
    • Technology
    • Lifestyle
    • Case Studies
    • Knowledge
    • Social Sector Leaders
    • Social Entrepreneurship
    • Philanthropy
    • Sports
    • Gaming
  • Prime
  • Home
  • CSR
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Environment
    • Education
    • Gender Equality
    • Health
    • Skill Development
    • No Poverty
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Articles
  • Interviews
  • Events
  • BOOKS
  • More
    • Technology
    • Lifestyle
    • Case Studies
    • Knowledge
    • Social Sector Leaders
    • Social Entrepreneurship
    • Philanthropy
    • Sports
    • Gaming
  • Prime
  • Login
  • Register
No Result
View All Result
India CSR Network
No Result
View All Result
Home More

What You Need to Know About the New Company Law and CSR

by India CSR Network
9 years ago
in More

Did you know, even private limited companies that meet financial norms come under the purview of CSR provisions?

NEW DELHI: It has reported that the Companies Bill, 2009 (the Bill), as passed by the Rajya Sabha on 8 August 2013 will introduce the concept of ‘Corporate Social Responsibility’ (CSR) into Indian company law. The World Business Council for Sustainable Development defines the concept of CSR as a “continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Senior lawyers Joyjyoti Misra and Arjun Rajgopal  of Khaitan & CO  answer few frequently asked questions by Indian companies on the changes made by the government on the CSR provisions.

indiacsr logoWho does the new CSR provisions apply to under the Bill?
Applicable to companies with: A net worth of Rs. 500 crore or more; a turnover of Rs 1,000 crore or more; and a  net profit of Rs 5 crore or more during any financial year.

What does the Bill require a company to do?
Companies qualifying are required to form a CSR Committee with at least one independent director. The CSR spend of a company which meets the aforementioned threshold is required to be 2% of the average net profits for the preceding three financial years.

My company is private limited. Is it required to meet the independent director requirement?
Yes, the concept of independent directors gets extended even to private limited companies if they meet the requisite financial thresholds.

What are the duties of a CSR Committee?
Formulate and recommend a ‘CSR Policy’ to the Board which indicate the activities to be undertaken by the company; Recommend the amount of expenditure to be incurred in relation to the CSR policy; and Monitor the progress of the CSR policy from time to time. The CSR policy is required to be disclosed on the company’s website.

What can my company use the CSR Spend for?
CSR activities recognised under the Bill include: Eradicating extreme hunger and poverty; Promotion of education; Promoting gender equality and empowering women;   Reducing child mortality and improving maternal health; Combating HIV, AIDS, Malaria and other diseases; Ensuring environmental sustainability; Imparting employment enhancing vocational skills;   Social business projects; and Contribution to certain funds. The company is to give preference to local areas when formulating its CSR policy.

Is there anything other than the Bill which we are required to comply with?
Yes, the Bill provides for rules to be prescribed in relation to CSR provisions. The rules are currently in the process of being drafted.

CSRBooks.com CSRBooks.com CSRBooks.com

How is the CSR spend to be accounted for?
The draft CSR Rules presently require a company to report their CSR spend in a form provided therein and it is likely that such reporting requirements will be included in the final rules as well.

What are the consequences of not complying with the CSR aspects of the Bill?
The Bill only provides that sufficient reasons need to be provided for not making the requisite CSR spend. While no specific penalties are contemplated in the Bill with respect to CSR, Chapter XXIX of the Bill (Sections 450 and 451) provide for general penalties for contravention and repeat offences.

(Business Standard, 9 August 2013)

ShareTweetPin

India CSR Network

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium content, we invite you to subscribe it.

Related Posts

Union Budget 2022: Tax Rebates in Budget for Realty Vital for Salaried Class
More

Union Budget 2022: Tax Rebates in Budget for Realty Vital for Salaried Class

January 19, 2022
India’s Veteran journalist Vinod Dua passes away
More

India’s Veteran journalist Vinod Dua passes away

December 5, 2021
Meet a NGO Leader who digs up dirt to set right system
More

Meet a NGO Leader who digs up dirt to set right system

August 10, 2021
More

Republic or Democratic?

January 22, 2021
Brand Identity of India CSR Network
CSR

Nomination invited for India CSR Professional of the Year Awards

August 4, 2021
More

Value of Books in Life

August 4, 2021
More

Google generates its 83% of revenues from the display of ads

August 4, 2021
More

Reliance Foundation Hospital rewarding medical staff with extra pay

August 4, 2021
CSR

Covid-19: ITC’s Paperboards and Specialty Paper Business lend its support to the needy in Telangana

August 4, 2021

Discussion about this post

Popular Stories

  • Lupin Terminates 300 Staff

    Lupin Terminates 300 Staff

    0 shares
    Share 0 Tweet 0
  • What is liberalization?

    0 shares
    Share 0 Tweet 0
  • 7 Reasons Why Smartphone Can Make Your Life Easier

    0 shares
    Share 0 Tweet 0
  • QNET CSR Arm Supports Electrification Project to light up the lives of 470 villagers in Meghalaya

    0 shares
    Share 0 Tweet 0
  • MCA amends Schedule III of Companies Act on disclosure norms in financial statements and Details of Corporate Social Responsibility (CSR)

    0 shares
    Share 0 Tweet 0
India CSR Network

  • Home
  • About Us
  • Team
  • Partnership
  • Contact
  • Terms of Use
  • Subscribe

No Result
View All Result
  • Home
  • CSR
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Environment
    • Education
    • Gender Equality
    • Health
    • Skill Development
    • No Poverty
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Articles
  • Interviews
  • Events
  • BOOKS
  • More
    • Technology
    • Lifestyle
    • Case Studies
    • Knowledge
    • Social Sector Leaders
    • Social Entrepreneurship
    • Philanthropy
    • Sports
    • Gaming
  • Prime
  • Login
  • Sign Up
  • Cart

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In