There is case in which a pvt company is exceeding its profit by 5 crores in current financial year, So company has to constitute CSR committe of 3 or more directors out of which 1 should be independent director according to Sec 135 but for this company independent director provisions are not applicable as its a private limited company.
So, How to constitute CSR committe for this company?
Refer Rule 5 of Companies (CSR) Rules 2014:
CSR Committees
5. (1) The companies mentioned in rule 3 shall constitute CSR Committee as under.—
| (i) | an unlisted public company or a private company covered under sub-section (1) of section 135 which is not required to appoint an independent director pursuant to sub-section (4) of section 149 of the Act, shall have its CSR Committee without such director; | |
| (ii) | a private company having only two directors on its Board shall constitute its CSR Committee with two such directors; | |
| (iii) | with respect to a foreign company covered under these rules, the CSR Committee shall comprise of at least two persons of which one person shall be as specified under clause (d) of sub-section (1) of section 380 of the Act and another person shall be nominated by the foreign company. |
(2) The CSR Committee shall institute a transparent monitoring mechanism for implementation of the CSR projects or programs or activities undertaken by the company.
BANSAL YOGESH AND CO
Gautam Budh Nagar
B.Com
View Details
Vakilsearch.com
Chennai
CA Inter
View Details
CAclubindia
Pro
Modal body text goes here.
CAclubindia
