New CSR Regime – Recent Amendment to the Companies Act
The Companies Amendment Acts of 2019 and 2020 resulted in major changes in the CSR provision. Amendments have been made in section 135 of the Companies Act, 2013. To provide for the notified changes, the Ministry of Corporate Affairs (MCA) had released the Draft Companies (Corporate Social Responsibility Policy) Amendment Rules in March 2020 (“Draft Rules”) inviting public comments. Recently, on 22nd January 2021, the MCA finally issued the Companies (Corporate Social Responsibility Policy) Amendment Rules (“New Rules”) giving effect to the changes introduced in CSR by the Companies Amendment Acts of 2019 and 2020.
The above CSR amendments propose to provide ease of compliance to companies and on the other hand they also seek to penalise companies and their officers for non-compliance with CSR provisions.
He has explained various aspects of the new CSR regime. That includes the list of activities which are not covered under CSR. He further explains the obligations of the board under CSR and highlights prominent cases that have emphasized the importance of CSR towards developing the nation.
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