The Ministry of Corporate Affairs (MCA) has proposed to increase the monitoring of CSR projects. On a circular issued on 13th March, 2020 invited public comments on the companies (Corporate Social Responsibility Policy) Amendment Rules, 2020.
The Corporate Social Responsibility Policy for companies has been mandated through Companies Act 2013 which came into effect since 1.4.2014. Section 135 enumerates the provisions concerning CSR and the companies (Corporate Social Responsibility Policy).
CSR means Corporate Social Responsibility (CSR)” means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Act in accordance with the provisions contained in these Rules, but shall not include the following, namely
- i) Activities undertaken in pursuance of the normal course of business of the company.
- ii) Any activity is undertaken by the company outside India.
iii) Contribution of any amount directly or indirectly to any political party under section 182 of the Act.
- iv) activities that significantly benefit the employees of the company and their families. Provided that in case of any activity having less than twenty-five percent employees as its beneficiary, then such activity shall be deemed to be CSR activity under these rules.”
The public comments are solicited on the draft Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020. The draft companies may be accessed at the web link http://feedapp.mca.gov.in/csr/ and comment and can be submitted online by end of business hours on 28th March 2020.
The stakeholders need not sent the comments separately through email or hardcopy and should be sent through the web link created for this purpose.
The Board of Directors of the company shall mandatorily disclose the composition of the CSR Committee, and CSR Policy and Projects approved by the Board on their website for public viewing, as per the particulars specified in the Annexure.