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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

Gujarat Textiles Ltd. receives a Corporate Social Responsibility contribution intended for the Employees' State Insurance Corporation (ESIC). Under the Code on Social Security, 2020, which statement about the Corporation accepting such money is correct?

The Corporation may accept grants, donations, CSR funds and gifts from the Central or State Government, local authorities, or any individual or body, whether incorporated or not. The Code places no restriction to government sources, to incorporated donors, or to contributions only.

  1. AThe Corporation may accept grants, donations, CSR funds and gifts from the Central or State Government, local authorities, or any individual or body, incorporated or notCorrect
  2. BThe Corporation may accept donations only from the Central Government
  3. CThe Corporation cannot accept CSR money, as it may receive only contributions from employers and employees
  4. DThe Corporation may accept gifts only from incorporated bodies

Explanation

Section 25(2) allows the Corporation to accept grants, donations, CSR Fund and gifts from governments, local authorities, and any individual or body, whether incorporated or not, for the purposes of the Chapter. The other options wrongly restrict the donors or exclude CSR money.

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