Amendment to the Companies (Corporate Social Responsibility Policy) Rules, 2014

MCA has, by way of a notification dated May 23, 2016 (‘May 23 Notification’), amended the Companies (Corporate Social Responsibility Policy) Rules, 2014 (‘CSR Rules’). The CSR Rules earlier permitted corporate social responsibility (‘CSR’) activities to be undertaken through a company established under Section 8[1] or a registered trust or a registered society (each a ‘Permitted Medium Entity’), which is established by the company either by itself or along with another company, and such entities were not required to show any minimum track record. In addition, the May 23 Notification now permits a company to undertake CSR activities through a Permitted Medium Entity established by the Central or State Government or by any entity established under an Act of Parliament or a State Legislature, without having to show any minimum track record. However, if CSR activities are carried out through any other permitted entity, then the existing requirements under CA 13 continue unaltered.

[1]     Company registered as a company with charitable objects, etc.