Corporate Social Responsibility(CSR) in New Companies Act-2013

Presented By Guided By

Mukesh Singh

+3 1st Year Com

BC-13-069.

Suresh Ch. Meher

+3 1st Year Com

BC-13-086

School of Commerce and Management Science.

NSCB College, Sambalpur,Odisha,India

Priyabrata Panda

Jr. lect in Com

1. Introduction.

2. History of Companies Bill.

3. Importance of Company Bill.

4. What is CSR.

5. CSR Voluntary Guidelines 2009.

6. CSR Provisions in New Companies Act.

i) CSR Committee

ii) Functions of the Committee.

iii) Responsibility of the Board.

7. Conclusion.

Companies has been passed by both the houses of parliament.President has already signed on this bill. Hence The Bill istermed as “ The Companies Act-2013”.

The New Companies Act - 2013 replaced the 57 years oldCompanies Act 1956.

1.The companies bill 2008 was introduced in 2008 but due to dissolution of the lok sabha.

2. Again the bill was reintroduced in 2009 but it .

3. It was reintroduced as a fresh companies bill in 2011.

4.Finally it took the form of companies bill 2012.

5. Companies bill was passed by lok sabha on 18th Dec 2012.

6.It was passed by rajya sabha on 8th Aug 2013.

1.Promotion of corporate governance, accountability and responsibility ofdirectors and independent directors.

2. New concepts like one man company, dormant company and new csrprovisions are introduced.

3. Provides establishment of serious fraud investigation office, investorprotection special courts.

The focus of this article is to explain Corporate Social Responsibility (CSR) of New Companies Act

1 A company’s sense of responsibility towards the community and environment(Both ecological and social) in which it operates, Companies express this citizenship through their waste and pollution reduction

CSR is all about how companies run their business to produce an overall positive impact on society.

CSR Provisions in Companies Act 2013

A Company is bound to conduct CSR activities if the company meets the following condition.

1.Net Worth(Net Capital) of the company is Rs 500 crore. or more.

or

2.Turn Over(Sales) is 1000 crore or more.

or

3. Net Profit is 5 crore or more.

CSR Provisions in Companies Act 2013(Cont)

1. The company which meets any one of the above condition are required to make a CSR Committee.

CSR Committee.

At least 3 or more directors.

CSR Provisions in Companies Act 2013(Cont)

Functions of CSR Committee.

Formulation of CSR policy.

Fixation of CSR activity.

CSR activity includes decrease of poverty and hunger, promotion of education, protecting environment, opposing child labor, plantation etc.

Monitoring this policy and change it time to time.

CSR Provisions in Companies Act 2013(Cont)Responsibility of the board

Approving CSR policy.

Display CSR policy in the company website.

Spending 2% of average net profit of last three financial years.

Local area where company is set up should be given preference for CSR spending.

Conclusion.

CSR

Goodwill

More Sales

More Profit

Ultimate Growth of the Business.

Thanks