BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Spend money to buy assets for the company
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Contribute capital to establish a company
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Purchase contributed capital amount from members of the company
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Inheritance from an estate deceased who is a member of the company
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Detailed explanation-1: -Expenses incurred by companies for the fulfillment of any Act/ Statute of regulations (such as Labour Laws, Land Acquisition Act etc.) would not count as CSR expenditure under the Companies Act. Contribution of any amount directly or indirectly to any political party shall not be considered as a CSR activity.
Detailed explanation-2: -As per Section 2(55) of the Companies Act 2013, every person who agrees in writing to become a member of a company may become a member. Any person who is competent to contract can be a member of a company.
Detailed explanation-3: -(ii)It is further clarified that CSR activities should be undertaken by the companies in project/ programme mode [as referred in Rule 4 (1) of Companies CSR Rules, 2014]. One-off events such as marathons/ awards/ charitable contribution/ advertisement/ sponsorships of TV programmes etc.
Detailed explanation-4: -Salary paid by the companies to regular CSR staff as well as to volunteers of the Companies (in proportion to company’s time/hours spent specifically on CSR) can be factored into CSR project cost as part of the CSR expenditure.