The much awaited Companies Bill, 2012 (Bill) was passed by the Lok Sabha on December 18, 2012, replacing 56-year-old Companies Act, 1956. The Bill seeks to consolidate and amend the law relating to the companies and intends to improve corporate governance and to further strengthen regulations for corporates.
The Bill is divided into 29 chapters, 470 clauses and 7 schedules. One of the key highlights of the Bill is - “ Section 135 -Corporate Social Responsibility”
By virtue of Clause 135, the most debated concept of corporate social responsibility (CSR) has been introduced. Accordingly, every company having net worth of Rs.500 crore or more, or turnover of Rs.1000 crore or more or a net profit of Rs.5 crore or more during any financial year is required to constitute a Corporate Social Responsibility Committee. The Corporate Social Responsibility Committee will formulate a Corporate Social Responsibility Policy. Such a company is required to spend at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy. If the company fails to spend such amount the Board shall give in its report the reasons for the same making it a binding obligation on the Board.
We appeal to you to sponsor and work with EWI Development Initiative Foundation, towards this objective. Allow EWI to help you fulfil your obligation. North East India needs your help. Come along with us!
The Bill is divided into 29 chapters, 470 clauses and 7 schedules. One of the key highlights of the Bill is - “ Section 135 -Corporate Social Responsibility”
By virtue of Clause 135, the most debated concept of corporate social responsibility (CSR) has been introduced. Accordingly, every company having net worth of Rs.500 crore or more, or turnover of Rs.1000 crore or more or a net profit of Rs.5 crore or more during any financial year is required to constitute a Corporate Social Responsibility Committee. The Corporate Social Responsibility Committee will formulate a Corporate Social Responsibility Policy. Such a company is required to spend at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy. If the company fails to spend such amount the Board shall give in its report the reasons for the same making it a binding obligation on the Board.
We appeal to you to sponsor and work with EWI Development Initiative Foundation, towards this objective. Allow EWI to help you fulfil your obligation. North East India needs your help. Come along with us!
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