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CS Professional · CSR and Social Governance · Corporate Social Responsibility

Kaveri Engineering Ltd has a CSR Committee that has recommended a CSR Policy. The Board is now considering it. Which course of action is consistent with section 135(4)?

The Board must approve the CSR Policy after taking into account the Committee's recommendations, disclose its contents in the Board's report, and place it on the company's website, if any, in the prescribed manner. Approval is a Board function, not the Committee's.

  1. AApprove the policy after considering the Committee's recommendations, disclose its contents in the Board's report and place it on the company's website, if anyCorrect
  2. BApprove the policy and file it only with the Registrar, without any website or report disclosure
  3. CLeave approval to the CSR Committee, since the Board has no role after the recommendation
  4. DApprove the policy but disclose it only to members who request it

Explanation

Section 135(4)(a) requires the Board, after taking into account the Committee's recommendations, to approve the policy and disclose its contents in its report and on the company's website, if any, in the prescribed manner. The other options omit these duties.

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