The Companies (Amendment) Bill sets the limit for CSR spending passed in Parliament

(PTI) New Delhi, Ta. July 30, 2019, Tuesday

The Companies (Amendment) Bill was passed in Parliament today, which aims to tighten CSR rules and ensure strict action against the violators of company law. Finance and Corporate Affairs Minister Nirmala Sitharaman said the government had put in place all the provisions of the ordinance in the new bill and also made new reforms.

The most important point in the new law is that the company must keep the amount for corporate social responsibility (CSR) in a special account. Under the new law, if the company's profit is more than Rs.5 crore, turnover is more than Rs.100 crore and net worth is more than Rs.500 crore, it will have to spend at least two percent of the net profit per year. In addition, the name of the company who violates the company law will be reduced from the company registrar.