The New Companies Bill was finally passed in Rajya Sabha today, making it mandatory for profit making companies to spend on activities related to Corporate Social Responsibility (CSR).
With the new legislation, India would possibly become the first country to have Corporate Social Responsibility (CSR) spending through a statutory provision.
The Bill, aimed at enhancing corporate governance, also contains provisions to strengthen regulations for corporates as well as auditing firms and promises to ensure an equitable and sustainable growth of the country.
Presenting the bill in Parliament, Corporate Affairs Minister Sachin Pilot termed the passage of the Bill as a new era for corporate law and regulation in Indian economy and said this is a ‘historic moment for the country.”
