Corporate Social Responsibility Section 135 Companies Act 2013
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Section 135 of Companies Act, 2013 deals with Corporate Social Responsibility. As per the section every company which full fill any of the following conditions is required to constitute a Corporate Social Responsible Committee of the Board which shall consist of three or more directors, out of which, at least one should be an independent director.
The conditions above said are as under:
(a) Net worth of the company is Rs. five hundred corers or more;
(b) Turnover of the company is Rs. one thousand crores or more;
(c) Net profit of the company is Rs. five crores or more
During any financial year
The Corporate Social Responsible Committee is required to formulate
and recommend a Corporate Social Responsibility Policy which shall include the activities to be undertaken as prescribed in Schedule VII of the Companies Act, 2013. The company is also required to put the contents of the said policy on company's website.
The companies that come within the ambit of section 135, are required to spend at least two percent of the average net profits, every financial year on activities as per its Corporate Social Responsibility Policy.
The activities as above have been specified in Schedule VII of the Companies Act 2013.
Read Full text of Section 135 >>
MCA has issued the following notifications dated 27-02-2014 with respect to provisions of section 135 as under:
