- The Rajya Sabha on July 30, 2019 approved the Companies (Amendment) Bill which seeks to tighten Corporate Social Responsibility (CSR) norms and ensure stricter action for non-compliance of the company law regulations.
- The Lok Sabha had passed the Bill on July 26.
- Under the Act, companies earning profit of over RS. 5 crore, turnover of Rs. 100 crore or networth of more than RS. 500 crore are required to shell out at least 2% of their three-year annual average net profit towards CSR activities.
- The Bill empowers the Registrar of Companies (RoC) to initiate action for removal of the name of the company from Register of companies if it is not carrying on any business or operation in according with the company law.
- The bill has the provision that any unspent annual CSR funds must be transferred to one of the funds under Schedule 7 of the Act like Prime Minister’s Relief Fund within six months of the financial year.
- The Bill also provides for re-categorisation of 16 minor offences as purely civil defaults and transferring of functions with regard to dealing with applications for change of financial year to Central government.
- It also provides for shifting of powers for conversion from public to private companies from NCLT to the central government.
