The tool of Corporate Social Responsibility (hereafter
referred to as 'CSR') has been introduced under the
Companies Act, 2013 (hereafter referred to as 'CA13'),
effective from April 1, 2014, to address the social obligations of
the corporate world. The objective of CSR is a noble one and
necessary for a robust and sustainable development. The general
reaction of the corporate industry towards the reform has been
positive. Various companies have undertaken extensive projects
addressing the socio-economic problems, facing the society at
large. In light of the reform, the present paper endeavours to
provide a detailed analysis of CSR regime in India.
Framework of the Corporate Social Responsibility Under the
Companies Act, 2013.
The vehicle of CSR has been driven into CA13 in order to bridge
the gap of inequality and fulfil various social obligations that
require certain amount of capital and other resources. CSR is
basically an obligation towards the nation at large, which attempts
to preclude confinement of the fruits of benefits to certain
consumers or shareholders. It is a legal responsibility that casts
upon a corporate body to address the umpteen number of
socio-economic-environment concerns plaguing the country.
Although proper implementation of CSR will definitely add to the
grandeur of the nation, detractors have questioned the need of such
obligations in a nation such as India where generally all the
policies of the government focus on striving socio-economic
equality and development. The reason for imposing such obligations
appears to be twofold, firstly, that the protracted problems of
socio-economic equality and environmental concerns have proved to
be chronic and secondly, the past endeavours demonstrate clearly
that a greater extent of participation is needed for reaching the
roots of such problems. Bringing the corporate world into the fold
of socio-economic obligations would prove to be beneficial for the
masses as well as the corporate world.
What is Corporate Social Responsibility?
The CSR has been defined in CA13 as projects or programs
relating to activities specified in Schedule VII of CA13; or
projects or programs relating to activities undertaken by the board
of directors of a company in pursuance of recommendations of the
CSR Committee of the Board as per declared CSR policy of the
company subject to the condition that such policy will cover
subjects enumerated in Schedule VII of CA13.1 However, the
definition is not an exhaustive one and has to be given widest
possible meaning since the concept of CSR is an enabling one and
based on socio-economic considerations.
The Hon'ble High Court of Bombay has held that where a Scheme of Amalgamation is executed between two companies registered in two different states [...], then the said two orders are two independent instruments.
The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
The Supreme Court in Central Bureau of Investigation, Bank Securities and Fraud Cell and Others v. Ramesh Gelli and Others has held officers of private banks to be public servants under Prevention of Corruption Act, 1988.
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