The 11-member Company Law Committee (CLC), set up under the chairmanship of Injeti Srinivas in September 2019 has submitted its report to Finance Minister.Recently a High Level Committee on CSR (Corporate Social Responsibility) was formed under the chairmanship of Injeeti Srinivas.
Recommendation of the committee
Corporate Social Responsibility (CSR)
An initiative called Corporate Social Responsibility was launched to provide voluntary contribution of companies in environmental and social welfare functions. Its main principle is that companies get income from the society itself, so they too should contribute something to the society.
Section 135 of the Companies Act, 2013 provides for CSR. Under the existing rule, the power to decide about CSR is given to the company’s board. According to this rule, a company with a net worth of Rs 500 crore or a turnover of more than Rs 1000 crore or a net profit of more than 5 crore has to spend 2% of the average of the net profit of the last three years for CSR related activities. CSR activities are described in the Seventh Schedule.
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