(a) company having networth of Rs. 500 crore or more
(b) company having turnover of Rs. 1000 crore or more
(c) company having net profit of 5 crore or more
(d) company having net profit of 2 crore or more during any financial year
Choose the most appropriate option :
Companies Act 2013: CSR Committee Applicability
Key Provisions for CSR Committee Constitution
Under Section 135 of the Companies Act, 2013, a company must constitute a Corporate Social Responsibility (CSR) Committee if it meets any of the following financial thresholds during the immediately preceding financial year:
- Net Worth: The amount is equal to or more than ₹500 crore.
- Turnover: The amount is equal to or more than ₹1000 crore.
- Net Profit: The amount is equal to or more than ₹5 crore.
Analysis of Criteria
Let's evaluate the given options based on the Act's requirements:
- (a) Net worth of ₹500 crore or more: This meets the threshold.
- (b) Turnover of ₹1000 crore or more: This meets the threshold.
- (c) Net profit of ₹5 crore or more: This meets the threshold.
- (d) Net profit of ₹2 crore or more: This does not meet the threshold of ₹5 crore.
Conclusion
Therefore, companies satisfying conditions (a), (b), and (c) are required to constitute a CSR Committee. Condition (d) is below the specified net profit threshold.
The correct combination includes options (a), (b), and (c).
Important Questions from Company law
- The problem of double taxation in international transactions can be reduced by:
i. Market agreement
ii. Multilateral agreement
iii. Bilateral agreement.
iv. Trade agreement - Which one statement is correct from the following statements ?
- Which of the following statement (s) is/are incorrect? Answer using codes given below :
(a) In Attorney General v. Great Eastern Railway Co. the House of Lords observed that the doctrine of ultra vires as it was explained in the Ashbury case, should not be maintained.
(b) Section 13 (i) (c) of the Companies Act provides incidental objects which need not be stated in the memorandum.
(c) If incidental objects are not stated in the memorandum, they would not be allowed by the principle of reasonable construction
(d) The doctrine of indoor management operates to protect insiders against the company
Codes : - Read Assertion (A) and Reason (R) and answer using the codes given below :
Assertion (A): Shareholders are not, in the eye of law, part owners of a company. The company is something different from the totality of the shareholders.
Reason (R) : Shareholders are collective owners of the company.
Codes : - Which of the following cases is about doctrine of indoor management ?
