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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

Kalyan Seva Trust, a public charitable trust, is run by trustees who manage property held for the benefit of the community. Which feature distinguishes it as a non-corporate entity from a company undertaking CSR?

A trust is a non-corporate entity in which trustees hold and manage property for beneficiaries, without incorporation under company law. Features like separate legal personality, board CSR committees and share issues belong to companies, which distinguishes the trust from a company undertaking CSR.

  1. AIt has a separate legal personality and perpetual succession like a company
  2. BIt is managed by trustees holding property for beneficiaries and is not incorporated under company lawCorrect
  3. CIt must have a CSR Committee of the Board
  4. DIt issues equity shares to the public to raise funds

Explanation

A trust rests on an obligation where trustees hold property for beneficiaries; it is not incorporated as a company. Separate personality, board CSR committees and equity issues are company features.

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