MCA notifies amendments to CSR provisions under the Companies Act, 2013 and amends Companies (Corporate Social Responsibility Policy) Rules, 2014
Background
The Companies (Amendment) Act, 2019 proposed to amend certain provisions of the Companies Act, 2013 (‘the Companies Act’) including provisions relating to Corporate Social Responsibility (‘CSR’) under section 135. Ministry of Corporate Affairs (‘MCA’) has notified1 these amendments to section 135 of the Companies Act w.e.f. 22 January 2021.
Further, MCA has also amended the Companies (Corporate Social Responsibility Policy) Rules, 2014 (‘CSR Rules’) vide notification2 dated 22 January 2021 (‘Amendment Rules’). The Amendment Rules have come into force w.e.f. 22 January 2021.
With the notification of amendments in section 135 of the Companies Act and introduction of the Amendment Rules, the regulatory framework for CSR provisions has undergone certain changes. This alert summarizes the key amendments in the CSR provisions contained in section 135 of the Companies Act read with the CSR Rules.