Corporate Updates 23 June 2014


The MCA has clarified provisions of Corporate Social Responsibility (Section 135) including the applicability test for CSR provisions. The CSR criteria is linked to turnover, networth and profits made by a company. The MCA clarification makes the applicability of Section 135 retrospective. This has made it mandatory for companies to see any of the three financial years for the purpose of 2014-15. Further expenditure incurred by Foreign Holding Company for CSR activities in India will qualify as CSR spend of the Indian subsidiary if, the CSR expenditures are routed through Indian subsidiaries and if the Indian subsidiary.


SEBI Chairman Shri. U K Sinha, has clarified that if there are two sets of requirements, it is settled principle as higher as the level of Supreme Court of India that the provisions of SEBI regulations will prevail so far as listed companies are concerned. All Listed companies will have to conform to SEBI provisions of providing mandatory e-voting facility to all shareholder resolutions passed in general meetings and they cannot take shelter under the Corporate Affairs Ministry stance and not provide e-voting facility to its shareholders till end-December. A Bombay Stock Exchange (BSE) spokesperson said that SEBI circular of April 17 (to provide mandatory e-voting facility), which was not yet amended, would prevail. (Source Business Line).

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