The Corporate Social Responsibility (CSR) is a board-driven process and the board of the company is empowered to decide, implement and monitor such activities, Union minister Anurag Singh Thakur said in Lok Sabha on Monday.
The union minister of state for finance said a company can also undertake its CSR activities through a registered trust or a registered society or a Section 8 company as per Rule 4(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014.
"Corporate Social Responsibility (CSR) is a board-driven process and the board of the company is empowered to decide, implement and monitor the activities undertaken as per Schedule VII of the Companies Act, 2013 taking into consideration the recommendation of its CSR committee," he said during the Question Hour.
Thakur said the entire CSR architecture is disclosure- based and CSR mandated companies are required to file details of CSR amount spent annually in MCA21 registry. Completion status of CSR projects or activities are not maintained by the government.
Whenever, any violation of CSR provisions is noticed, action against such non-compliant companies is initiated as per the provisions of the Companies Act, 2013 following due process of law, he said.