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Query regarding section 8 company

Co Act 2013 193 views 1 replies

ANKIT SHAH

66 Points Joined June 2014

Sir,

I have a client having a Public Limited company and liability of CSR. For CSR activities he want to incorporate a section 8 company. He wants that section 8 company will be subsidiarry of Public Limited company.

I want your expert advice on whether section 8 company can be a subsidiary company of the company of which CSR expenditure will going to spend?

Can section 8 company through which CSR activities will be carried on shall be made as a subsidiary company?

Thanking you in advance.

Replies (1)

Jatin Bajaj

2930 Points Joined April 2016

Yes, As per Rule 4 of CSR Rules, The Board of a Company may decide to undertake its CSR activities approved by the CSR Commitee through a Company established under section 8 of the act or a registered trust or a registered society either singly or along with the other Company.

Yes, Section 8 Company can be made as the wholly owned subsidiary Company of the Company of which CSR expenditure will be spent in future.