Column : A mixed bag of company law reforms
One of the proposed landmark changes is to make corporate social responsibility or CSR, as is its popular moniker, mandatory for all corporations with (a) R500 crore of net worth or (b) R1,000 crore of turnover or (c) R5 crore of net profit. If any one of the aforesaid limits is crossed, then that corporation must be compulsorily ready to part with 2% of average profits earned in the last three years, towards one of the listed CSR activities. These activities include both social and environmental activities, ranging across eradicating extreme hunger and poverty, promoting education, empowering women, combating diseases, and ensuring environmental sustainability. This will mean that even a loss-making company will have to contribute towards
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