Discuss The Impact Of Companies Amendment Bill 2020 On The Corporate Social Responsibility

Contents  hide 

1 Introduction

2 Corporate social responsibility

3 Features of the Corporate Social Responsibility

3.1 CSR Projects

4 Analysis

5 Reference

5.1 Related

Introduction

The Companies Amendment Bill 2020 was introduced in Lok Sabha on March 17, 2020[1] which brought into highlight the amendments related to the corporate social responsibility. The corporate social responsibility is deeply integrated in the Indian ecosystem it’s our age old tradition of dharma which is being followed with the time and memorial. It is not just orient to one particular religion but it’s a charity for the public good at large. The companies bill 2018, and later on

The Companies bill 2019 was originally did not contain this provision of the CSR.

This system has come out to be complied and explained under The Companies’ (Amendment) act 2019[2], but it has mandate the expense for the purpose of CSR to the funds specified in the social service. There is the section of the society opposing and demanding the rights of non-enforcement

by to make it a voluntary mood of the procedure.

The underline outline of the use of the CSR is to utilize the use pool of the knowledge, efficiently and talent in the corporate and undertaking the activities for the common goods of the society and the community in which the corporate operates at large. CSR creates the important role in the social and the economical development brought under the companies act. The companies need to be ethical and focus at inclusive growth rather than

focus on their personal growth at the cost of society. They should value their employees and members of the local community[3].

Corporate social responsibility

The amendment imitation with respect to the corporate social responsibility was done under The Companies’ (Amendment) act 2019, but the provision

under this act were not being codified and a lot many provisions were part of the act. There after certain more amendments were being make by The companies (Amendment) act, 2020 under the Section 135.

When the government notified the provision of the companies act 2020 it also notified the amendments of the companies (amendment) act 2019 on 22, January 2021[4]. The companies if are able to help the development of the nation and to make a contribution in some part of it then and to protect the environment and will benefit the nature as lesser harm is being inflicted, in the present in the present for the scenario and. The companies needs to widen the scope and need to change the image from the exploitation of the development and rather make

it’s a help by provisions such as corporate social responsibility in this image transformation.

Features of the Corporate Social Responsibility

• There is the change in the regime of the voluntary expenditure to the mandatory expenditure of the corporate social responsibility. Before if you didn’t wanted to show the expenditure of the corporate social responsibility you need to explain the reason for the so. But, now the provision have been made mandatory now so you have to show the expenditure on the corporate social responsibility
• you need to transfer the required amount to the preferred fund.
• The definition of the corporate social responsibility was been profound again under the pursuance of the Section 135 making the necessary changes under the COVID -19 Situation , the R and D activities with collaboration of the institution or organization. It also mentioned that if the crickets and
• the sports persons who are representing the state or any union territory will come under the category of the CSR.
• The constitution of the CSR committee is now optional if the CSR obligation does not exceed the Rs. 50 Lakhs. In such case the functions of the CSR Committee shall be discharge by the Board of the Directors.
• There is an Addition of the Annual action plan it will create to formulate and to recommend and to undertake and
• to check the manner of the executed and
• the modalities of the utilization of the funds and the implementation and schedules.
• The unspent CSR expenditure is treat into two regimes one is that of the case of the ongoing project and the other one of the other case. Every company having average CSR obligation of ten crore rupees or more in the three immediately preceding financial years, of their

CSR Projects

• CSR projects having outlays of one crore rupees or more, and
• which have been complete not less than one year before undertaking the impact study.
•  CSR Reporting format has been change which will be effective for the FY 2020-21 onwards. the eligible intermediaries
• through which the company shall undertake the CSR Project or
• Programe will require to register itself with the Central Government
• by filing the Form CSR-1 electronically with effect from April 01, 2021
• the Board shall ensure that the CSR activities are undertake by the company itself or through  the company has establish
• under Section 8 of the Act, or a registered public trust, registered
• Section 12A and 80 G of the Income Tax Act, 1961, established by the company, either singly or along with any other company,  established
• under section 8 of the Act or a registered trust or a registered society, established by
• the Central Government or State Government OR any entity established
• under an Act of Parliament or a State legislature a company established
• under section 8 of the Act, or a registered public trust or a registered society.

Analysis 

The corporate social Responsibility is a good idea and the companies should alien with their corporate social responsibility with the CSR model. because there is responsibility that if your aligning your business model with the CSR and not just thinking and spending that the company has to just spend because otherwise it can give the huge pool of man power to someone the efficiently and that could help a lot the companies. Schedule 7 of the companies act and

the schedule 7 of the holistic development in state of the activity based

in the next round the government need to over look at the schedule 7. The government should make online portal for the other citizens to make and aware for the contribution under the same.

Reference

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[1] Companies (Amendment) Bill 2020 introduced in Lok Sabha, Companies Amendment Bill, (7-02- 2021 15: 59), https://www.jagranjosh.com/

[2] The Companies (Amendment) Bill, 2019 |, (7-02- 2021 15: 59), https://www.prsindia.org/

[3] Dr. G.K. Kapoor; Dr. Sanjay Dhamija, Company Law-A Comprehensive Text Book on Companies Act 2013 118 (22nd ed. Taxmann, 2019).

[4] Companies (CSR Policy) Amendment Rules, 2021, (7-02- 2021 15: 59), https://taxguru.in/