Corporate social responsibility

Co Act 2013 200 views 2 replies

Akanksha Gupta

Company Secretary

70 Points Joined November 2011

Good Afternoon everyone,

I would request for clarification on following two points w.r.t CSR:

1. Can anybody else apart from Directors be a part of the CSR Committee in a Pvt. Ltd. Co.? For eg. 2 directors + CEO or Finance Manager or CS be a part of the Commitee along with the Directors?

2. What should be the effective date of Formation of CSR Committee? If a XYZ Pvt. Ltd. is crossing the net profit limit in the current financial year, then from when should the committee be formed?

Any clarification for any of the above would be highly appreciated.

Thank You.

Replies (2)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

1. CSR is expenditure is responsibility of the Board. CSR Committee is a committee of the Board as per Sec.135(1). Person other than directors cannot be member of the committee with voting power. He can of course be an invitee.

2. Whether the company has crossed the prescribed limit of net profit or not will be known only after approval of audited financials. Hence Board should form Committee only after approval of audited financials. Formation of the committee will be effective from date of Board resolution.