News

Government to further modify companies law and CSR spending, ordinance circulated

The government is planning to make amendments of “urgent nature” to the companies law. As per a notice, the changes will also include certain provisions for the CSR spending of the companies.

After circulating an ordinance to amend the Companies Act, 2013, the Corporate Affairs Ministry is now looking forward to comments from stakeholders for the changes proposed.

The notice released by the ministry said certain amendments of “urgent nature would be required to further strengthen the corporate governance and enforcement framework”.

A committee to keep a check on the penal offences under the Act had recommended numerous amendments to the law. After the recommendations, an ordinance was passed on November 2.

The ministry, is now seeking comments from stakeholders on the newly proposed amendments by November 20.

Amendments have also been proposed to CSR provisions. According to law, a certain set of profitable companies are required to a minimum of 2 percent of their three-year annual average net profit for social welfare activities. If the companies fail to do so, they would be answerable for the same.

As per the proposed changes, the amount remaining under CSR provisions should be transferred by the company in a time-span of 30 days from the end of the financial year. “A special account to be opened by the company in that behalf for that financial year in any scheduled bank,” will receive this amount.

The money would be called, the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer,” as per the notice.

A few amendments have also been recommended in The National Financial Reporting Authority.

After passing the ordinance, the ministry said it is expecting to reduce the pendency of cases before special courts by 60 percent, along with reducing the applicable penalties for small companies.

Amit Khurana

Share
Published by
Amit Khurana

Recent Posts

Gaurav Taneja: From Commercial Pilot to Influencer

Gaurav Taneja, also known as Flying Beast, is a name that resonates with millions in…

2 weeks ago

Shiv Nadar: A Visionary Journey from Tech Innovation to Transformative Philanthropy

Shiv Nadar, the visionary founder of HCL Technologies and a transformative force in Indian philanthropy,…

3 weeks ago

Syed Abdul Rahim: From School Teacher to Legendary Football Coach – The Story Behind Maidan

Syed Abdul Rahim, known as the architect of modern Indian football, was a visionary who…

2 months ago

The Inspiring Journey of Dr Tanu Jain—From BDS to UPSC Success and Now a Dedicated UPSC Trainer

In a world where career paths are often rigidly defined, Dr. Tanu Jain is a…

3 months ago

Atishi Marlena: From Rhodes Scholar to Delhi’s Youngest Chief Minister

Atishi Marlena has become a symbol of educational reform and progressive politics in India. Known…

3 months ago

From Naib Subedar to Paralympic Medalist: The Inspiring Journey of Hokato Hotozhe

In the world of sports, stories of triumph over adversity are always inspiring. However, some…

3 months ago