Atul was with the view that they do not fall under the category of compulsory adherence of CSR protocol (spending part of profit on CSR) laid by companies Act 2013
Answers
Answer:
where is the question but?????
Answer:
Hope You Want The Below One
Explanation:
Holding or subsidiary of a company does not have to comply with section 135(1) unless the holding or subsidiary itself fulfills the criteria. Whether provisions of CSR are applicable on Section 8 Company, if it fulfills the criteria of section 135(1) of the Act.
Section 135 (5) The Board of every company
referred to in sub-section (1), shall
ensure that the company spends, in
every financial year, at least two per
cent of the average net profits of the
company made during the three
immediately preceding financial
years, in pursuance of its Corporate
Social Responsibility Policy:
1
st Proviso to
Section 135 (5)
Provided that the company shall give
preference to the local area and areas
around it where it operates, for
spending the amount earmarked for
Corporate Social Responsibility
activities:
2
nd Proviso to
Section 135 (5)
Provided further that, if the company
fails to spend such amount, the
Board shall, in its report made under
clause (o) of sub-section (3) of section
134, specify the reasons for not
spending the amount.