Strict Penal Provisions For Defaults In Csr Compliances Introduced

Introduction

Recently, the Parliament passed the Companies (Amendment) Bill, 2019 ("the Amendment") to amend the provisions of the Companies Act, 2013 ("the "Companies Act") that deal with, inter alia, Corporate Social Responsibility ("CSR"). The companies (a) having net worth of INR 500 crores or more, (b) turnover of INR 1,000 crores or more, or (c) a net profit of INR 5 crores or more have an obligation of spending at least two percent of the average net profits of three immediately preceding financial years on socially important activities as provided under the Companies Act. The Amendment has