top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

Whether section 135 is required to be complied by the company as well as its holding or subsidiary company?

+1 vote
posted Aug 4 by Mukul Chag

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

Rule 3(1) of Companies (CSR Policy) Rules, 2014 provides that every company including its holding or subsidiary which fulfils the criteria specified in sub-section (l) of section 135 of the Act with regard to turnover or net profit shall comply with the provisions of section 135 of the Act and these rules.

As per section 135(1), every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. The criterion needs to be fulfilled by individual company.

Therefore, if the holding company or the subsidiary company themselves fulfills the criteria specified in Section 135, all the provisions mentioned therein become applicable to such company.

Merely being a holding or subsidiary company of a company which fulfills the criteria under section 135(1) does not make the company liable to comply with section 135, unless the company itself fulfills the criteria

answer Aug 8 by Adarsh
Contact Us
+91 9880187415
#280, 3rd floor, 5th Main
6th Sector, HSR Layout
Karnataka INDIA.