Cos face penalty for not meeting CSR spend Target : TOI
Dear all,
Your association is forwarding herewith an article published in Times of India, Mumbai Edition on dated 18/07/2019 heading “Cos face penalty for not meeting CSR spend Target”.
As per the Article, the government on Wednesday recommended several amendments to the Companies Act, including penalty on companies that do not meet the mandated 2% spending requirement towards corporate social responsibility (CSR) and “fit and proper” criteria for debarring directors from holding board positions.
Companies with a net worth of Rs 500 crore or more, or turnover of over Rs 1,000 crore, or net profit of over Rs 5 crore have to spend at least 2% of the average net profit made during the three immediately preceding financial years on CSR activity. So far, they were only required to report it to shareholders. But the government has now decided to crack the whip.
Similarly, companies now have to disclose the details of significant beneficial ownership, an obligation that was so far cast on shareholders. The government saw it as a loophole and has sought to plug it. The rules mandate that details of all shareholders with interest of 10% or more in a company, either direct or indirect, have to be disclosed.
To read the article PLEASE CLICK HERE.
This is for your kind information.
Thanking you,
With regards,
For Silvassa Industries & Manufacturers Association,
Narendra Trivedi,
Secretary
