New Delhi : The government is likely to make further amendments in the Companies Act along with changes in certain rules as part of its efforts to provide more clarity on Corporate Social Responsibility (CSR) provisions. A government-appointed high level panel recently submitted recommendations on CSR norms to the Corporate Affairs Ministry, which is implementing the Act.
Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least 2 per cent of their three-year annual average net profit towards CSR activities.
These provisions came into force from April 2014. Sources said an action taken report has been prepared on the recommendations made by the panel. The report has been cleared by Corporate Affairs Minister Arun Jaitley. For further action on the panel’s suggestions, the ministry is looking at various options, including possible amendments to the Companies Act, they added.
Changes would be made to certain rules related to CSR activities apart from coming out with clarifications through circulars, sources said. While amendments to the Act need to be cleared by Parliament, rules can be changed by the ministry itself. Proposals for possible amendments to the Act would be submitted to the Companies Law Committee, sources told PTI.
