Question

Provisions regarding Corporate Social Responsibility are incorporated in the Companies Act, 2013 under

• A. Section-101
• B. Section-111
• C. Section - 135
• D. Section-235

Hint:

The Companies Act, 2013 introduced several new concepts. CSR (Section 135), One Person Company (OPC), and provisions related to independent directors are some of the most important and frequently tested new areas. Memorize these key section numbers.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question asks for the specific section in the Companies Act, 2013, that contains the provisions for Corporate Social Responsibility (CSR).
Step 2: Key Formula or Approach:
The relevant section in the Companies Act, 2013 is:
- Section 135: Titled "Corporate Social Responsibility". This section mandates certain companies (based on their net worth, turnover, or net profit) to constitute a CSR Committee of the Board and spend a specified amount (at least 2% of average net profits of the preceding three years) on CSR activities. The activities that qualify as CSR are listed in Schedule VII of the Act.
Step 3: Detailed Explanation:
- Section 101 deals with the notice of meetings.
- Section 111 deals with the circulation of members' resolutions.
- Section 235 deals with the power to acquire shares of shareholders dissenting from a scheme or contract approved by the majority.
Therefore, the correct section that incorporates CSR provisions is Section 135.
Step 4: Final Answer:
Provisions regarding Corporate Social Responsibility are incorporated under Section - 135.