Companies (Corporate Social Responsibility Policy) Amendment, Rules, 2022 – 20th September, 2022

MCA vide its notification dated 20 th September, 2022, made amendments to the Companies (Corporate Social Responsibility Policy) Rules, 2016. These rules may be called as Companies (Corporate Social Responsibility Policy) Amendment, Rules, 2022. This Notification will come into force from the date of publication in Official Gazette.

Sr. No. Part/Chapter/Section /Sub-section(s) in the Companies Rules, 2014 Modifications Part/Chapter/Section /Sub-section(s) in the Companies Rules, 2014 Modifications Analysis 1. in rule 3, - in sub-rule (1), after the proviso, the following proviso shall be inserted “Provided further that a company having any amount in its Unspent Corporate Social Responsibility Account as per sub-section (6) of section 135 shall constitute a CSR Committee and comply with the provisions contained in sub-sections (2) to (6) of the said section.”; Every company including its holding or subsidiary, and a foreign company defined under clause (42) of section 2 of the Act having its branch office or project office in India, which fulfills the criteria specified in sub-section (I) of section 135 of the Act shall comply with the provisions of section 135 of the Act and these rules: Provided that net worth, turnover or net profit. of a foreign company of the Act shall be computed in accordance with balance sheet and Profit and loss account of such company prepared in accordance with the provisions of clause (a) of sub-section (1) of section 381 and section 198 of the Act. Provided further that a company having any amount in its Unspent Corporate Social Responsibility Account as per sub-section (6) of section 135 shall constitute a CSR Committee and comply with the provisions contained in sub-sections (2) to (6) of the said section. sub-rule (2) shall be omitted. Every company which ceases to be a company covered under subsection (1) of section 135 of the Act for three consecutive financial years shall not be required to - (a) constitute a CSR Committee; and (b) comply with the provisions contained in 1 [sub-section (2) to (6)] of the said section, till such time it meets the criteria specified in sub-section (1) of section 135 . 2 . in rule 4, for sub-rule (1), the following sub-rule shall be substituted ‘(1) The Board shall ensure that the CSR activities are undertaken by the company itself or through, – (a) a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (