Multiple choice

Which of the following statements is not correct?

  1. The board of every company shall, after taking into account the recommendations made by the corporate social responsibility committee, approve the corporate social responsibility policy for the company and disclose contents of such policy in its report and also place it on the company’s website, if any, in such manner as may be prescribed.

  2. The board of every company shall ensure that the activities that are included in the corporate social responsibility policy of the company are undertaken by the company.

  3. The board of every company shall ensure that the company spends, in every financial year, at least two percent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its corporate social responsibility policy.

  4. None of these
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D Correct answer
Explanation

Section 135 of the Companies Act, 2013 states that the board of every company referred to in subsection (1) shall

  1. after taking into account the recommendations made by the corporate social responsibility committee, approve the corporate social responsibility policy for the company and disclose contents of such policy in its report and also place it on the company’s website, if any, in such manner as may be prescribed
  2. ensure that the activities that are included in the corporate social responsibility policy of the company are undertaken by the company
  3. ensure that the company spends, in every financial year, at least two percent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its corporate social responsibility policy

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