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.
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.
KK & Company Chartered Accountant
Pune
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